Housing Market Index Improves

The NAHB/Wells Fargo Housing Market Index improved to 18 in August compared to 17 in July.  This is the idnex’s highest reading since  June 2008. This index measures builders’ views over the conditions of the housing market; any reading below 50 implies their view is negative.  The index remains depressed primarily due to, improving, but still massive inventory levels.  The composite index is calculated by three sub-indices that include current sales that were unchanged for the month, expected sales up to 30 from 26 on the month, and traffic through model homes up to 16 from 13.  This index continues to point toward a bottom and gradual recovery in the US housing market.  High foreclosure levels and a worsening employment situation continue to prevent the sector from realizing its full potential.