U.S. housing market index rises to highest level since July 2005

The NAHB/Wells Fargo Housing Market Index rose sharply in December. The home builder confidence caps 2016 at cycle high, stated Wells Fargo. Following the U.S. Presidential election, the housing market index rose 7 points to 70 in December, standing at its highest level since July 2005.

The huge 7-point rise can greatly by linked to a post-election bump as builders are reportedly hopeful that the new administration would cut regulatory burdens that been broadening on housing affordability, said Wells Fargo in a research report. Unseasonably mild weather has also likely strengthened builder sentiment in December.

Future sales were up 9 points to 78, whereas current sales increased 7 points reaching the highest level in six months. Buyer traffic rose 6 points to 53, reaching its highest level since October 2005. Both have possibly advanced from unseasonably mild weather and attempts by buyers to beat expected interest rate rises.

All four regions also witnessed a strong rebound in confidence in the Northeast and the West, each recording double-digit rises.