Builder Confidence Steady in November
Builder confidence in the single-family home market was unchanged in November’s National Association of Home Builders/Wells Fargo Housing Market Index.
November’s index of 54 means that for the sixth consecutive month, “more builders have viewed market conditions as good than poor,” NAHB said in releasing the results on Nov. 18.
NAHB has been conducting the monthly survey for the last 25 years. Builders are asked about their views on current sales as well as their expectations for the following six months. Builders also are asked to gauge the traffic of prospective buyers. Any index number over 50 indicates that more builders thought conditions were good than did those who thought they were poor.
The survey component about current sales held steady at 58, while expectations for future sales fell by one point to 60. Builders were less positive about traffic of prospective buyers, with a score of 42.
Results in the West and South were unchanged in the three-month moving average, NAHB said. In the Northeast, the index gained one point, and in the Midwest it fell three points.
“Policy and economic uncertainty is undermining consumer confidence,” NAHB chief economist David Crowe said in NAHB’s announcement. “The fact that builder confidence remains above 50 is an encouraging sign, considering the unresolved debt and federal budget issues cause builders and consumers to remain on the sideline.”