U.S. homebuilders have not felt this good about their business in a decade.
Sentiment jumped 3 points in October to a level of 64 on the National Association of Home Builders/Wells Fargo Housing Market Index. Anything above 50 is considered positive sentiment. The index stood at 54 last October.
"The fact that builder confidence has held in the 60s since June is proof that the single-family housing market is making lasting gains as more serious buyers come forward," said NAHB Chairman Tom Woods, a homebuilder from Blue Springs, Missouri. "However, our members continue to tell us there are still pockets of softness in some markets across the nation, and that they face challenges regarding the availability of lots and labor."
Of the index's three components, two saw gains in October.
Sales expectations in the next six months rose 7 points to 75, while current sales conditions rose 3 points to 70. Buyer traffic, however, didn't move, sitting at 47— the only component still in negative territory. Regionally, on a three-month moving average, the West registered a 5-point gain to 69, and the Northeast, Midwest and South each rose 1 point to 47, 60 and 65, respectively.