Builder Confidence Rises Three Points in AugustAugust 16th, 2013 by Editor
Builder confidence in the market for newly built, single-family homes rose three points to 59 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) for August. This fourth consecutive monthly gain brings the index to its highest level in nearly eight years.
“Builders are seeing more motivated buyers walk through their doors than they have in quite some time,” says NAHB chairman Rick Judson, a homebuilder from Charlotte, N.C. “What’s more, firming home prices and thinning inventories of homes for sale are contributing to an increased sense of urgency among those who are in the market.”
“Builder confidence continues to strengthen along with rising demand for a limited supply of new and existing homes in most local markets,” notes NAHB chief economist David Crowe. “However, this positive momentum is being slowed by the ongoing headwinds of tight credit and low supplies of finished lots and labor.”
Two of the HMI’s three components posted gains in August. The component gauging current sales conditions rose three points to 62, while the component gauging sales expectations in the next six months gained a single point to 68 and the component gauging traffic of prospective buyers held unchanged at 45.
All but one region saw a gain in its three-month moving average HMI score in August. The Midwest and West each posted six-point increases, to 60 and 57, respectively, while the South posted a four-point gain to 54 and the Northeast held unchanged at 39.