By Dees Stribling MHN Online
Builder confidence in the market for new single-family homes rose one point in March to 47 on the National Association of Home Builders/Wells Fargo Housing Market Index, which the organization released on Monday. The index’s components were mixed. The component gauging current sales conditions rose one point to 52, while the component measuring buyer traffic increased two points to 33. The component reflecting sales expectations in the next six months fell one point to 53.
The index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Any number over 50 indicates that more builders view conditions as good than poor, so the latest index is still in negative territory, though not all of the components are.
“A number of factors are raising builder concerns over meeting demand for the spring buying season,” NAHB chief economist David Crowe noted in a press statement. “These include a shortage of buildable lots and skilled workers, rising materials prices and an extremely low inventory of new homes for sale.”
