Confidence among single-family home builders dropped three points in April to 68 on the NAHB’s 100-point housing index.
Complied with the help of Wells Fargo, the National Association of Home Builders index measures builders’ perceptions of the market, asking them to rate conditions from “good” to “poor” currently and six months in the future.
"Even with this month's modest drop, builder confidence is on very firm ground, and builders are reporting strong interest among potential home buyers," said association Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas.
Numbers about 50 indicate a majority view conditions as favorable — a trend that NAHB chief economist Robert Dietz said he expects to continue.
"The fact that the HMI (Housing Market Index) measure of current sales conditions has been over 70 for five consecutive months shows that there is continued demand for new construction," said NAHB Chief Economist Robert Dietz. "However, builders are facing several challenges, such as hefty regulatory costs and ongoing increases in building material prices."