- Home
- World
- News
- US Housing Index Up in Oct Despite Record Prices Keeping Some Buyers Away - Realtors' Data
US Housing Index Up In Oct Despite Record Prices Keeping Some Buyers Away - Realtors' Data
Muhammad Irfan Published October 18, 2021 | 07:58 PM
The US Housing Market Index rose by four points to reach a reading of 80 in October as builders were encouraged by continued buyer enthusiasm despite record high home prices keeping some off the market, the National Association of Home Builders said on Monday
WASHINGTON (UrduPoint News / Sputnik - 18th October, 2021) The US Housing Market Index rose by four points to reach a reading of 80 in October as builders were encouraged by continued buyer enthusiasm despite record high home prices keeping some off the market, the National Association of Home Builders said on Monday.
"Strong consumer demand helped push builder confidence higher in October despite growing affordability challenges stemming from rising material prices and shortages," the realtors association said in a news release.
Derived from a monthly survey that the association has been conducting for 35 years, the index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor."
The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
All three major HMI indices posted gains in October, the association said. The index gauging current sales conditions rose five points to 87, the component measuring sales expectations in the next six months posted a three-point gain to 84 and the gauge charting traffic of prospective buyers moved four points higher to 65.
The overall reading was at 80.
Notwithstanding the improved builder sentiment, the association voiced concerns about bottlenecks in the home delivery system. "Although demand and home sales remain strong, builders continue to grapple with ongoing supply chain disruptions and labor shortages that are delaying completion times and putting upward pressure on building material and home prices," Chuck Fowke, chairman of the association, said.
The Federal Reserve's plans to roll back its long-running stimulus for the US economy could heighten pressure on the market, said Robert Dietz, chief economist at the association. "Building material price increases and bottlenecks persist and interest rates are expected to rise in coming months as the Fed begins to taper its purchase of US Treasuries and mortgage-backed debt."
New home sales rose 1.5% to a seasonally adjusted annual rate of 740,000 units in September.
Pending home sales rose 1.4% in August, after shrinking by 1.8% in July, according to the realtors' index which measures signings on existing home purchases that have yet to be concluded. Year-on-year, the growth was a lot more pronounced, surging 8.1%.
Dire housing shortages in the United States since the financial crisis of 2007/2008 and last year's coronavirus outbreak have sent home prices to record highs.
Related Topics
Recent Stories
Senate continues discussion on Presidential address to Joint Sitting of Parliame ..
Masood Khan calls for Pak-US cooperation for regional peace
Interior Minister starts Margalla Trail Patrol for security
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 26 April 2024
Today Gold Rate in Pakistan 26 April 2024
ICC Womens T20 World Cup Qualifier, Match 2: Ireland Women open with Comfortable ..
Robinson, bowlers help New Zealand go 2-1 up against Pakistan
Shahzeb Chachar to hold khuli kachehri on April 26
Heatwave amid Israel's aggression in Gaza brings new misery, disease risk
Tourism must change, mayor says as Venice launches entry fee
Court adjourns Judicial Complex attack case till May 17
Nasreen Noori’s book ‘Popatan Jahra Khwab’ launched
More Stories From World
-
Myanmar plans to export 2,000 tons of coffee in 2024-25 fiscal year
3 minutes ago -
Chinese shares close higher Friday
3 minutes ago -
Pro-Palestinian US campus protests grow as police crack down
23 minutes ago -
Miner Anglo American rejects BHP's $38.8 bn takeover bid
33 minutes ago -
Guatemala prosecutors raid international NGO over alleged child abuse
43 minutes ago -
Another State Dept official resigns over US' Gaza policy amid growing student protests
43 minutes ago
-
Togo leader Gnassingbe follows father's political playbook
53 minutes ago -
China ready to work with Pakistan to promote practical cooperation under CPEC, GDI: Luo Zhaohui
1 hour ago -
Indian election resumes as heatwave hits voters
1 hour ago -
United by grief, families of Boeing crash victims demand justice
2 hours ago -
Microsoft expands its AI empire abroad
2 hours ago -
China ready to work with Pakistan to promote practical cooperation under CPEC, GDI: Luo Zhaohui
2 hours ago