Home builders close to saying it’s a good housing market
An index measuring home builders’ confidence in the housing market jumped four points in June to 49 — one point shy of what’s considered to be a good market.
The National Association of Home Builders/Wells Fargo Housing Market Indexis based on a monthly survey of NAHB members. This month, the biggest gain was in sales conditions, which increased six points to 54.
The four-point gain in the overall index “shows some renewed confidence in the industry,” said NAHB Chairman Kevin Kelly, president of Leon N. Weiner & Associates in Wilmington, Del. “However, builders are still facing strong headwinds, including the limited availability of labor.”
Plus, consumers are still waiting for “clear signals of full-fledged economic recovery before making a home purchase,” said NAHB Chief Economist David Crowe.
The index’s component measuring buyer traffic reflects this — it came in at only 36, even after gaining three points.
Builders are being cautious about starting new houses until consumer demand picks up, he said.