The National Association of Home Builders/Wells Fargo Housing Market Index has found confidence in the market for newly built, single-family homes rose two points in August to 55. NAHB chairman Kevin Kelly said the result was encouraging, but many builders still faced difficult conditions.
“As the employment picture brightens, builders are seeing a noticeable increase in the number of serious buyers entering the market; however, builders still face a number of challenges, including tight credit conditions for borrowers and shortages of finished lots and labor,” Kelly said.
The survey asks builders to rate their perceptions of current single-family home sales and sales expectations for the next six months, as well as traffic of prospective buyers.
“Each of the three components of the HMI registered consecutive gains for the past three months, which is a positive sign that builder confidence appears to be firming following an uneven spring,” NAHB chief economist David Crowe said. “Factors contributing to this rise include sustained job growth, historically low mortgage rates and affordable home prices, which are helping to unleash pent-up demand.”
Home builder confidence is at its highest level since the beginning of the year after a third consecutive monthly gain.