The NAHB/Wells Fargo Housing Market Index rose one point in March to 47, the NAHB reported. Any number under 50 on the seasonally adjusted index indicates that more builders view conditions as poor than good.
“The March HMI mirrors last month’s sentiment, as builders continued to be affected by poor weather and difficulties in finding lots and labor,” said NAHB Chairman Kevin Kelly.
“A number of factors are raising builder concerns over meeting demand for the spring buying season,” said NAHB Chief Economist David Crowe. “These include a shortage of buildable lots and skilled workers, rising materials prices and an extremely low inventory of new homes for sale.”
The average regional HMI scores all fell in March. The Northeast dropped to 35, a decrease of three points. The Midwest also saw a three-point drop to 53. The South’s regional HMI score landed at 49 after a four-point dip, and the West saw a two-point decrease to 61.
Builder confidence in the market for new single-family homes continued to hover on the low side this month, according to new data from the National Association of Home Builders.