WASHINGTON, DC—Builder confidence in the market for newly-built single-family homes rebounded in August, rising four points in August to a level of 68 on the National Association of Home Builders/Wells Fargo Housing Market Index. All three HMI components have posted gains for this month.
The component gauging current sales conditions rose four points to 74 while the index charting sales expectations in the next six months jumped five points to 78. Meanwhile, the component measuring buyer traffic, while lagging the other two, increased a single point to 49.
“The fact that builder confidence has returned to the healthy levels we saw this spring is consistent with our forecast for a gradual strengthening in the housing market,” says Robert Dietz, chief economist with NAHB. “GDP growth improved in the second quarter, which helped sustain housing demand. However, builders continue to face supply-side challenges, such as lot and labor shortages and rising building material costs.”
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
