Industry News

Builder confidence stuck in rut

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Builder confidence held steady for the second month in a row after a six-month slide, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index, released today. The January index of 57 is above the midpoint of 50. Derived from a monthly survey that NAHB has been conducting for about 20 years, the index gauges builder perceptions of single-family home sales and sales expectations for the next six months as either "good," "fair" or "poor." The survey also asks builders to rate 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. "Housing markets across the country have cooled, as predicted, and builders are aware that some slowing in demand is inevitable following the record-breaking sales for the past three years," said David Pressly, NA...