The National Association of Home Builders recently released their Housing Market Index report for November showing a solid increase in builder confidence for the seventh consecutive month. It now stands at 46, a five-point gain from last month. This is great news for communities across the nation as well as for us here in Elmhurst.

The NAHB Housing Market Index measures builders’ perceptions of both current single-family home sales as well as expectations of sales for the next six months. It also looks at the rate of traffic in prospective buyers that builders are experiencing. After combining these ratings, an adjusted index is produced showing the rate of confidence the builders have in the market overall.

In November’s report, two of the three indexes registered gains. The factor rating current sales conditions showed the largest increase – an eight-point gain to 49, its highest mark in more than six years. The factor measuring sales expectations for the next six months remained above 50 for a third consecutive month, notching up a two-point gain to 53. The factor measuring traffic of prospective buyers stayed unchanged at 35, though it had posted a five-point gain in October.

NAHB Chairman, Barry Rutenberg, a homebuilder from Gainesville, FL stated, "Builders are reporting increasing demand for new homes as inventories of foreclosed and distressed properties begin to shrink in markets across the country." He adds that with these improving conditions as well as continued low mortgage interest rates, many buyers who were undecided are becoming more and more motivated to purchase a new home.

Even though builders’ confidence rates are still somewhat tentative – not yet solidly above 50 at which an equal number of builders view the market as both good and poor – they are showing consistently strong upward trends from month to month. At this time last year, the HMI stood only at 19. Some conditions still present difficulties for the market such as tight lending conditions for both builders and buyers, but overall confidence is definitely on the upswing.

For Elmhurst, this means that now is one of the best times in recent memory to get into the real estate market, and the Gracik Makinney Real Estate Group can help you make the most of this trend. With community knowledge, industry experience, and personal dedication, our team is the best place to start on the road to home ownership in Elmhurst. Contact us today at 540 South York St. in Elmhurst, or at (630) 567-5902. Please note also that we are moving in early December to 210 N. York Rd., Elmhurst.