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Modest Gain in Builder Sentiment for Spring

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Modest Gain in Builder Sentiment for Spring
Article by Daily Real Estate News; March 18, 2014

Builder confidence in the single-family new-home market ticked up by only one point in March as builders remain concerned about several challenges in the sector, according to the latest reading on the National Association of Home Builders/Wells Fargo Housing Market Index.

“The March HMI mirrors last month’s sentiment, as builders continued to be affected by poor weather and difficulties in finding lots and labor,” says NAHB Chairman Kevin Kelly.

Several factors are raising concerns about meeting demand for the spring buying season, says 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,” Crowe says.

NAHB’s index gauges builder perceptions of current single-family home sales and sales expectations for the next six months, as well as buyer traffic. Overall, builder sentiment in March was 47; any number below 50 indicates that more builders view conditions as poor than good.

Broken out, the component gauging current sales conditions was 52 in March; the component measuring sales expectations for the next six months was 53; and the component measuring buyer traffic rose two points to 33.

Source: National Association of Home Builders; Daily Real Estate News (031814) | Blog, In The News, distribution provided by Kenneth Bargers and Bargers Solutions, member of Pilkerton Realtors, residential real estate services located in Nashville, Tennessee

10220_1158837183099_6930637_nKENNETH BARGERS, REALTOR® | Bargers Solutions real estate : marketing
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