Homebuilders Still Uneasy

Homebuilder confidence has hit a wall, according to March's National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index report, released today. 

After cold weather and supply constraints pushed February's reading down to a lowly 46 points, March's 47 points aren't anything to write home about. Analysts had been hoping for a significantly stronger comeback to 50. 

Any number over 50 indicates that more builders view sales conditions as good than poor, a point reached for the first time since April 2006 in June. The survey looks at builder confidence in newly built single-family homes. This latest report keeps confidence in contraction territory, a potentially troubling sign for the housing market.

"The March HMI mirrors last month's sentiment, as builders continued to be affected by poor weather and difficulties in finding lots and labor," said NAHB Chairman Kevin Kelly in a statement today.

Digging deeper into components, current sales conditions increased one point to 52, prospective buyer traffic increased two points to 33, and future sales expectations for the next six months dipped one point to 53.

In a statement NAHB Chief Economist David Crowe said there are several reasons for the continued slump:

A number of factors are raising builder concerns over meeting demand for the spring buying season. These include a shortage of buildable lots and skilled workers, rising materials prices and an extremely low inventory of new homes for sale.

The overall index had been above 50 from June through January, reflecting a strengthening housing market. The latest reading, based on responses from 296 builders, comes as the spring home-selling season gets going. The season typically sets the pattern for residential hiring and building construction in the ensuing months.

-- Material from The Associated Press was used in this report.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2878429, ~/Articles/ArticleHandler.aspx, 9/2/2014 10:07:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement