Builder confidence in the market for new single-family homes in the United States was up a point to 47 in April 2014, from March's downwardly revised level of 46, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
How index components stood in April 2014:
• The component tracking current sales conditions was unchanged at 51.
• The component tracking traffic of prospective buyers was unchanged at 32.
• The component tracking expectations for future sales was up by four points, to 57.
The HMI's three-month moving average was down in all four regions of the United States:
• the West was down 9 points to 51
• the Midwest was down 4 points to 49
• the Northeast was down two points to 33
• the South was down to 47
“Builder confidence has been in a holding pattern the past three months,” said NAHB Chairman Kevin Kelly, a homebuilder and developer from Wilmington, DE. “Looking ahead, as the spring home buying season gets into full swing and demand increases, builders are expecting sales prospects to improve in the months ahead.”
“Job growth is proceeding at a solid pace, mortgage interest rates remain historically low, and home prices are affordable,” said NAHB Chief Economist David Crowe. “While these factors point to a gradual improvement in housing demand, headwinds that are holding up a more robust recovery include ongoing tight credit conditions for home buyers and the fact that builders in many markets are facing a limited availability of lots and labor.”
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