Home Builders' Future Sales Expectations at Highest Level in 6 Years
Jun 5, 2013
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Builder confidence in the new home market in the United States was up three points in May 2013, to 44 in the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
The increase in confidence in the market for new, single-family homes was up from a downwardly revised 41 in April 2013. The May index reflected gains in all three of its components:
* the current sales conditions index was up four points to 48
* expectations for future sales were up one point to 53, reaching its highest level since February 2007
* the index of traffic of prospective buyers was up three points to 33
"Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates, and strengthening local economies," said NAHB Chairman Rick Judson, a home builder from Charlotte, NC. "This is definitely an encouraging sign even amidst rising challenges with regard to the cost and availability of building materials, lots and labor."
"While industry supply chains will take time to re-establish themselves following recession-related cutbacks, builders' views of current sales conditions have improved and expectations for the future remain quite strong as consumers head back to the market in force," said NAHB Chief Economist David Crowe.
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