Homebuilder confidence hits 10-year high

Builder confidence hit its highest level in 10 years in September as the housing market’s expansion gradually improves.

The National Association of Home Builders/Wells Fargo Housing Market Index for new single-family homes increased one point to 62, the best reading since October 2005.

But even while the single-family housing market is making progress, concerns about the availability of lots and labor remain, said NAHB Chairman Tom Woods, a homebuilder from Blue Springs, Mo.

{mosads}Homebuilders are forecasting about 1.1 million total housing starts this year.

“Today’s report is consistent with our forecast, and barring any unexpected jolts, we expect housing to keep moving forward at a steady, modest rate through the end of the year,” said David Crowe, chief economist for the NAHB.

Two of the three index components posted gains in September.

The index measuring buyer traffic rose two points to 47, and the component gauging current sales conditions rose one point to 67.

Meanwhile, the index charting sales expectations in the next six months dropped from 70 to 68.

Regionally, the three-month averages rose one point in the West (64), Midwest (59) and South (64). The Northeast dropped one point to 46.