Hardware Retailing The Industry's Source for Insights and Information
Builder confidence in the market for newly built, single-family homes was unchanged in November according to the National Association of Home Builders/Wells Fargo Housing Market Index. For the sixth consecutive month, more builders have viewed market conditions as good than poor.
“Given the current interest rate and pricing environment, consumers continue to show interest in purchasing new homes, but are holding back because Congress keeps pushing critical decisions on budget, tax and government spending issues down the road,” said NAHB Chairman Rick Judson. “Meanwhile, builders continue to face challenges related to rising construction costs and low appraisals.”
“Policy and economic uncertainty is undermining consumer confidence,” said NAHB Chief Economist David Crowe.
HMI data is derived from a monthly survey that NAHB has conducted for 25 years. The index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as good, fair or poor and asks builders to rate traffic of prospective buyers as high to very high, average or low to very low. Scores from each component are used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
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