Builder Confidence Rises in June
Washington, DC, June 16, 2014 -- Builder confidence in the market for newly built, single-family homes rose four points to 49 on the National Association of Home Builders/Wells Fargo Housing Market Index.
It remains one point shy of the threshold for what is considered good building conditions.
“After several months of little fluctuation, a four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry,” said NAHB Chairman Kevin Kelly.
“However, builders are facing strong headwinds, including the limited availability of labor.”
“Consumers are still hesitant, and are waiting for clear signals of full-fledged economic recovery before making a home purchase,” said NAHB Chief Economist David Crowe.
“Builders are reacting accordingly, and are moving cautiously in adding inventory.”
All three index components posted gains in June. Most notably, the component gauging current sales conditions increased six points to 54. The component gauging sales expectations in the next six months rose three points to 59 and the component measuring buyer traffic increased by three to 36.