September isn't even over yet, and there's good news to sum up the month. According to the NAHB/Wells Fargo Housing Market Index, builder confidence is way up. The numbers, which jumped six points to 65, are the highest they've been since October of last year. Builders across the nation are seeing more serious buyers, spurred on by solid job growth and low interest rates. Numbers here in the west are the highest of any region in the U.S., up four points to 73.  

The NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

However, builders are balancing the optimism of serious buyers and a strong economy with factors like worker shortages, supply-side constraints, and low lot inventory.  “With the inventory of new and existing homes remaining tight, builders are confident that if they can build more homes they can sell them,” said NAHB Chief Economist Robert Dietz.