Confidence among builders in the single-family home market is just below what’s considered a “good” market, according to the latest NAHB survey.
The June Wells Fargo/National Association of Home Builders Housing Market Index increased four points, reaching 49 on a 100-point scale. A figure of 50 or higher signals that most builders see conditions as positive.
"After several months of little fluctuation, a four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry," said 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 chief economist David Crowe said it will likely take a while until indicators turn positive — and stay that way.
"Consumers are still hesitant, and are waiting for clear signals of full-fledged economic recovery before making a home purchase," Crowe said. "Builders are reacting accordingly, and are moving cautiously in adding inventory."