The NAHB/Wells Fargo Housing Market Index’s reading for builder confidence in the market for new single-family homes dropped to 68 last month, the NAHB reported. That reading still reflects strong confidence in the market, according to NAHB Chairman Granger MacDonald.
“Even with this month’s modest drop, builder confidence is on very firm ground, and builders are reporting strong interest among potential home buyers,” MacDonald said.
All three components of the housing index fell in April but are still on healthy ground. Current sales conditions dropped by three points to 74; sales expectations for the next six months declined by three points to 75; and buyer traffic dropped by a point to 52.
The three-month moving averages for the West and Midwest both rose by a point to 77 and 68, respectively, while the South remained at 68 and the Northeast dropped by two points to 46.
“The fact that the HMI 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."'
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Despite a three-point drop, builder confidence in April remained strong, according to the National Association of Home Builders (NAHB).