Builder Confidence Slips Two Notches in March

March 19th, 2013 by DWM Magazine

Builder confidence in the market for newly built, single-family homes paused for a third consecutive month in March, with
a two-point reduction to 44 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released yesterday.

“In addition to tight credit and below-price appraisals, home building is beginning to suffer growth pains as the infrastructure that supports it tries to re-establish itself,” says NAHB
chief economist David Crowe. “During the Great Recession, the industry lost home building firms, building material production capacity, workers who retreated to other sectors and the pipeline of developed lots. The road to a housing recovery will be a bumpy one until these issues are addressed, but in the meantime, builders are much more optimistic today than they were at this time last year.”

While the HMI component gauging current sales conditions declined four points to 47, the component gauging sales expectations in the next six months and the
component gauging traffic of prospective buyers both posted gains, of one point to 51 and three points to 35, respectively, in March.

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