What is the National Association of Home Builders/Wells Fargo Housing Market Index?
The NAHB/Wells Fargo Housing Market Index is based on a monthly survey of U.S. homebuilders. The index captures U.S. homebuilders’ outlook for the single-family housing market. Survey respondents rate current market conditions, the next six months conditions, and the traffic of prospective buyers of new homes. They base their ratings on buyer behavior, sales, and forecasts.
Why is the Housing Market Index valuable?
Because homebuilders have a direct involvement with their local markets, they can provide accurate and timely information on current market conditions and future home sales. This makes the Housing Market Index a useful gauge for understanding the outlook of the U.S. housing sector. Additionally, it is a helpful tool for monitoring the overall health of the economy as houses are such a large investment.
What should you do?
Watching the Housing Market Index can provide valuable insight into the health of the U.S. economy since housing starts are considered a key economic indicator. Majestic’s CORE Report follows the Housing Market Index; along with other indicators every week to see where the market stands.