Builders in three regions grew more optimistic about new home construction
Builders were more confident about newly constructed single-family homes in September despite higher construction costs that held back demand in some parts of the country.
Builder’s optimism in the market for new single-family homes climbed one point to 68 from August’s 67 points, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
NAHB reported that the index hit its highest reading since October 2018. Sentiment levels have hovered in the mid- to upper 60s since May.
Current sales conditions rose two points to 75, and the growth rate of prospective buyers remained unchanged at 50. Meanwhile, sales expectations in the following six months dropped from 71 to 70 points.
Regionally, HMI scores in the Northeast, West, and the South edged up to 62, 77, and 71 points, respectively. The Midwest held steady at 57.
However, the trade war between China and the United States has put a damper on home construction in manufacturing areas. NAHB’s latest Home Building Geography Index revealed that construction in these areas started weakening in Q4 2018.
