Builder confidence available in the market for newly-built single-family properties rose one level to 66 in August, in accordance with the newest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) launched right this moment. Sentiment ranges have held at a strong 64-to-66 stage for the previous 4 months.
“Even as builders report a firm demand for single-family homes, they continue to struggle with rising construction costs stemming from excessive regulations, a chronic shortage of workers and a lack of buildable lots,” stated NAHB Chairman Greg Ugalde, a house builder and developer from Torrington, Conn.
“While 30-year mortgage rates have dropped from 4.1 percent down to 3.6 percent during the past four months, we have not seen an equivalent higher pace of building activity because the rate declines occurred due to economic uncertainty stemming largely from growing trade concerns,” stated NAHB Chief Economist Robert Dietz. “Although affordability headwinds remain a challenge, demand is good and growing at lower price points and for smaller homes.”
Derived from a month-to-month survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of present single-family residence gross sales and gross sales expectations for the subsequent six months as “good,” “fair” or “poor.” The survey additionally asks builders to fee site visitors of potential consumers as “high to very high,” “average” or “low to very low.” Scores for every part are then used to calculate a seasonally adjusted index the place any quantity over 50 signifies that extra builders view circumstances pretty much as good than poor.
The HMI index gauging present gross sales circumstances elevated two factors to 73 and the part measuring site visitors of potential consumers rose two factors to 50. The measure charting gross sales expectations within the subsequent six months fell one level to 70.
Looking on the three-month shifting averages for regional HMI scores, the South moved one level greater to 69, the West was additionally up one level to 73 and the Midwest inched up a single level to 57. The Northeast fell three factors to 57.
Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and isn’t seen or influenced by any exterior occasion previous to being launched to the general public. HMI tables might be discovered at nahb.org/hmi. More info on housing statistics can also be accessible at housingeconomics.com.