Strong housing demand keeps builders optimistic in future – Can the homebuyers find your sales center?
Builder confidence edged down slightly in April as supply places a strain on builders, however confidence in the future remains on solid ground as homebuyer demand continues to surge, according to the latest Housing Market Index from the National Association of Home Builders and Wells Fargo.
Builder confidence decreased one point to 69 in April, the HMI showed. This marks the fourth consecutive month of decreases as it fell one point in March to 70, dropping from February’s downwardly revised reading, which was previously set at a post-recession high of 72.
“Strong demand for housing is keeping builders optimistic about future market conditions,” NAHB Chairman Randy Noel said. “However, builders are facing supply-side constraints, such as a lack of buildable lots and increasing construction material costs. Tariffs placed on Canadian lumber and other imported products are pushing up prices and hurting housing affordability.”
Derived from a monthly survey that NAHB has been conducting for 30 years, the index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as good, fair or poor. [read full article]
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