The Housing Market Index survey measures the level of market confidence for local home builders and other industry professionals on a scale of zero to 100 with 50 representing a neutral or average rating. The three main components of the index were again mixed in September with the current conditions rating dropping three points to 63 while the expected conditions during the next six months index increased two points to 70. Traffic conditions improved one point to 47.

The local HMI has moved within in a narrow band between 59 and 61 during the last four months. Home builders have continued to show strong confidence in the market despite fluctuating mortgage rates and election year jitters, said HBA Executive Vice President Tim Underwood.

“The attitude of home builders has been very steady during the last few months despite rising interest rates, mixed economic reports and the upcoming elections,” Underwood said. “The growing difference between the current conditions and the expected conditions during the next six months shows that while home builders remain solidly optimistic about current conditions, they are seeing a strong finish to 2004 and a solid beginning to the new year.”

Home builders in the lowest price ranges boosted their confidence in September while builders in the mid-range and upper-bracket home prices showed lower ratings. The index for builders under $225,000 soared 13 points last month to 70 while the rating for builders in the $225,000 to $299,000 category dropped 11 points to 55. The index for home builders in the $300,000 to $450,000 and the more than $600,000 price ranges fell five points each to 60 while the index for builders in the $450,000 to $600,000 range fell six points to 67. All three of the highest price categories posted double-digit drops in current conditions and gains in expected conditions during the next six months.

Home builders in the Jackson/Cass counties region are the most confident, posting a nine-point gain to 75. The index for the Northland jumped four points to 56 while ratings for the Johnson/Miami counties market fell 11 points to 57 and Wyandotte/Leavenworth counties area fell six points to 57.

The Housing Market Index is based on a similar survey conducted monthly by the National Association of Home Builders. The “builder confidence survey” is considered to be an accurate barometer for evaluating the present and future strength of the housing industry. The survey asks home builders and other industry professionals to rate present conditions, expected conditions during the next six months and consumer traffic. The results are tallied using a scale from 0 to 100, with 50 being considered a neutral or “average” rating.