Severe Weather Hits Builder Confidence
Washington, DC, Feb. 18, 2014 -- Unusually severe weather conditions across much of the nation along with continued concerns over the cost and availability of labor and lots resulted in a loss of builder confidence last month.
According to the National Association of Home Builder, confidence posted a 10-point drop to 46 on the National Association of Home Builders/Wells Fargo Housing Market Index.
“Significant weather conditions across most of the country led to a decline in buyer traffic last month,” said NAHB Chairman Kevin Kelly.
“Builders also have additional concerns about meeting ongoing and future demand due to a shortage of lots and labor.”
“Clearly, constraints on the supply chain for building materials, developed lots and skilled workers are making builders worry,” said NAHB Chief Economist David Crowe. “The weather also hurt retail and auto sales and this had a contributing effect on demand for new homes.”
All three of the major HMI components declined in February. The component gauging current sales conditions fell 11 points to 51, the component gauging sales expectations in the next six months declined six points to 54 and the component measuring buyer traffic dropped nine points to 31.