Builders Confident In New Home Market
The National Association of Home Builders' Housing Market Index surveys home builders in an effort to measure confidence in the market for newly-built single-family homes. The survey asks builders for their perceptions of current traffic, sales conditions, and expectations for the next six months. Their responses are scored on a scale where any number above 50 indicates that more builders view conditions as good than poor. In March, the index fell two points to 72. Dean Mon, NAHB's chairman, says confidence is still high, though uncertainty is rising. “Builder confidence remains solid, although sales expectations for the next six months dropped four points on economic uncertainty stemming from the coronavirus,” Mon said. “Interest rates remain low, and a lack of inventory creates market opportunities for single-family builders.” Because the survey was largely conducted before March 4, NAHB's chief economist, Robert Dietz, cautioned that next month's survey may more fully reflect the coronavirus' impact on sentiment.