Home builder confidence held firm this month, according to the National Association of Home Builders’ monthly Housing Market Index. September’s reading of 13 equaled a 17-month low.
The HMI is on a 1-100 scale. A value of 50 or better indicates “favorable conditions” for home builders.
Broken down, the Housing Market Index is actually a weighted composite of 3 separate surveys which measures current single-family sales; projected single-family sales; and foot traffic of prospective buyers.
None of the 3 September surveys improved from August:
- Single-Family Sales : 13 (unchanged from August)
- Projected Single-Family Sales : 18 (unchanged from August)
- Buyer Foot Traffic : 9 (from 10 in August)
Builder confidence is lower in 2010 than at any point in recorded history.
For home buyers in Chicago , the drop in sentiment creates opportunity. With builders feeling “down”, there’s a greater likelihood for discounts and free upgrades. It can mean more house for your home buying money.
Plus, with the supply of both new and existing homes elevated, and foreclosures still hitting the market, conditions aren’t soon likely to change.
Then, couple all that with all-time low mortgage rates and monthly housing payments look as affordable as ever.
If your plans call for buying a home in the early part of 2011, you may want to consider moving up your time frame. Today’s market looks ripe for a good deal.
