While builder confidence is on the rise, inventory remains tight
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Builder confidence in the market for newly built single-family homes rose two points in May, according to the National Association of Home Builders (NAHB).
The NAHB/Wells Fargo Housing Market Index (HMI) jumped to 70, the second-highest index reading since the economic downturn.
Sales expectations in the next six months rose four points to 79; current sales conditions also went up by two points to 76; while the index’s buyer traffic decreased by a point to 51.
“The HMI measure of future sales conditions reached its highest level since June 2005, a sign of growing consumer confidence in the new home market,” said NAHB Chief Economist Robert Dietz. “Especially as existing-home inventory remains tight, we can expect increased demand for new construction moving forward.
Builders, however, continue to deal with shortages of lots and labor and increasing building-material costs.”
The moving averages for the Northeast and the South gained three points to 49 and 71, respectively; the West increased by a point to 78; and the Midwest remained the same at 68 points
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The NAHB/Wells Fargo Housing Market Index (HMI) jumped to 70, the second-highest index reading since the economic downturn.
Sales expectations in the next six months rose four points to 79; current sales conditions also went up by two points to 76; while the index’s buyer traffic decreased by a point to 51.
“The HMI measure of future sales conditions reached its highest level since June 2005, a sign of growing consumer confidence in the new home market,” said NAHB Chief Economist Robert Dietz. “Especially as existing-home inventory remains tight, we can expect increased demand for new construction moving forward.
Builders, however, continue to deal with shortages of lots and labor and increasing building-material costs.”
The moving averages for the Northeast and the South gained three points to 49 and 71, respectively; the West increased by a point to 78; and the Midwest remained the same at 68 points
Related stories:
Builder confidence in 55+ market remains positive despite drop
Much of housing market still lags behind pre-recession prices
