Thursday
October 30, 2014

Builder Confidence Slips Slightly

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Builder Confidence Slips Slightly

Builder confidence in newly built single-family homes dropped one point in February, virtually leveling out after solid gains the past year, the National Association of Home Builders/Wells Fargo Housing Market Index shows. Still, the index remains near its highest level since May of 2006.

"This is partly due to ongoing uncertainties about job growth and consumer access to mortgage credit, but it's also a reflection of the fact that builders are now confronting rising costs for building materials and, in some markets, limited availability of labor and lots as demand for new homes strengthens,” says NAHB Chairman Rick Judson.

The index gauges builder perceptions of single-family home sales and sales expectation for the next six months. A score over 50 in the index indicates more builders view conditions as good than poor. The overall index dropped one point in February to 46. Other measurements: Builders’ confidence over current sales conditions dropped one point to 51 and builders’ sales expectations for the next six months rose one point to 50.

Source: National Association of Home Builders

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