Housing Market Index sees modest decline

The National Association of Home Builders’ Housing Market Index remained low this month, dropping 1 point to 18 out of a possible score of 100.

The index, which measures home builder sentiment based on seasonally-adjusted single-family home sales figures and prospective buyer traffic, hit an all-time low in January, with a ranking of 8. The figure bounced back up to 14 by April, but has hovered around the 17 to 19 point range since July.

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According to a statement from the association, any score below 50 indicates negative home builder sentiment.

The October index ratings for traffic of prospective buyers, current single-family sales, and outlook for sales over the next six months all dropped from last month as well. The three components, which, combined, help determine the Housing Market Index, ranked at 14, 17 and 27, respectively. Last month’s figures were at 17, 18 and 29, respectively.

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