Daily Real Estate News | Monday, June 16, 2014

Builder confidence in the market for newly built, single-family homes rose four points in to reach a level of 49 on the National Association of Home Builders/Wells Fargo Housing Market Index. However, the number remains one point shy of the threshold for what is considered good building conditions.

“A four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry,” says NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “However, builders are facing strong headwinds, including the limited availability of labor.”

NAHB says builders are taking their cues from a weak consumer market.

“Consumers are still hesitant, and are waiting for clear signals of full-fledged economic recovery before making a home purchase,” says NAHB Chief Economist David Crowe. “Builders are reacting accordingly, and are moving cautiously in adding inventory.”

Whenever the seasonally adjusted index is higher than 50, that indicates more builders view conditions as good, rather than poor. Regionally, the South and Northeast each edged up one point to 49 and 34, respectively, while the West held steady at 47. The Midwest fell a single point to 46.