Builders remain confident in the market for new single-family homes, according to the most recent survey from NAHB.
The July housing market index from the National Association of Home Builders and Wells Fargo stood at 59 on a 100-point scale. The figure is a one-point drop from the previous month.
"For the past six months, builder confidence has remained in a relatively narrow positive range that is consistent with the ongoing gradual housing recovery that is underway," said NAHB Chairman Ed Brady, a builder and developer from Bloomington, Illinois. "However, we are still hearing reports from our members of scattered softness in some markets, due largely to regulatory constraints and shortages of lots and labor."
The index is compiled from regional surveys of home builders on their beliefs about the current market and future sales. They rate conditions as “good,” “fair” or “poor,” and buyer traffic as "high to very high," "average" or "low to very low." Any figures over 50 indicate a majority of homeowners view conditions as positive.
NAHB Chief Economist Robert Dietz said he expects conditions to stay positive.
"The economic fundamentals are in place for continued slow, steady growth in the housing market," Dietz said. "Job creation is solid, mortgage rates are at historic lows and household formations are rising. These factors should help to bring more buyers into the market as the year progresses."