Because builders have an unique view of the new home market, the National Association of Home Builders tracks their perspective each month as part of their Housing Market Index. The survey has been conducted for 30 years and scores builders’ responses on a scale where any number above 50 indicates more builders view conditions as good than poor. In July, builder confidence was relatively unchanged from the month before, falling one point to 59. Robert Dietz, NAHB’s chief economist, says the market remains poised for growth. “The economic fundamentals are in place for continued slow, steady growth in the housing market,” Dietz said. “Job creation is solid, mortgage rates are at historic lows and household formations are rising. These factors should help to bring more buyers into the market as the year progresses.” Among the survey’s three components, measuring buyer traffic, current sales, and expectations for the next six months, future expectations fell furthest, dropping three points to 66. Regionally, the Midwest, South, and West all continued to post positive numbers, while the Northeast trails behind with a three-month moving average of 39. Builder confidence is considered an important measure of housing’s health due to the important role new homes play in balancing the market. More here.
