Economy

Builders More Confident About New Housing Market

Written by Sandy Williams


Builder confidence in the new built, single-family housing market rose in June. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) registered 49, just a point below the reading of 50 that indicates good building conditions.

“After several months of little fluctuation, a four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry,” said NAHB Chairman Kevin Kelly. “However, builders are facing strong headwinds, including the limited availability of labor.”

“Consumers are still hesitant, and are waiting for clear signals of full-fledged economic recovery before making a home purchase,” said NAHB Chief Economist David Crowe. “Builders are reacting accordingly, and are moving cautiously in adding inventory.”

Regionally, builder confidence, as indicated by a three-month moving average, rose one point in both the South and Northwest to 59 and 34, respectively. The West was unchanged at 47 and the Midwest dropped a point to 46.

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