The National Association of Home Builders conducts a monthly survey to measure builders’ confidence in the market for newly built homes. Builders have a unique perspective on the market, since their business depends on knowing when, where, and what buyers want. Because of this, the NAHB’s survey is considered an important indicator of housing market health. In July, the survey found confidence up for the seventh consecutive month. In fact, their Housing Market Index – which is based on survey results – rose one point to 56 on a scale where any number above 50 indicates more builders view conditions as good than poor. Alicia Huey, NAHB’s chairman, says the lack of available homes for sale has been good for the new home market. “The lack of resale inventory means prospective home buyers who have not been priced out of the market continue to seek out new construction in greater numbers,” Huey said. Survey components measuring current sales conditions and buyer traffic both saw increases in July, while the component gauging future expectations saw a slight decline. (source)
