Industry News

Builder confidence falls to lowest point since 1995

Index falls four points in June

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A builders' confidence index fell four points in June and sank to its lowest level since April 1995, the National Association of Home Builders reported this week. The NAHB/Wells Fargo Housing Market Index is derived from a monthly survey of builders and gauges builder perceptions of current and future home sales. The survey asks builders to rate current sales and sales expectations for the next six months as "good," "fair" or "poor" and also asks builders to rate the traffic of prospective buyers as either "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor. All three component indexes declined in June. The index gauging current sales was down three points to 47, while the index gauging sales expectations for the next six months fell five points to 50 and the index gauging traffic of prospective buyers declined...