U.S. home builders remained confident in April for the market for newly built single-family homes according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). April was a strong month despite the facts the index fell three points to a level of 68, after an unusually high March reading.
Although all All three HMI components suffered losses in April, they still remain at healthy levels. Current sales condition components decreased three points to 74 while the index measuring sales expectations in the next six months fell three points to 75. Buyer traffic was also down by one point to 52.
Regional three-month moving averages for the West and Midwest both went up by one point to 77 and 68. The South remained unchanged at 68, and the Northeast decreased two points to 46.
NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas had said, “Even with this month’s modest drop, builder confidence is on very firm ground, and builders are reporting strong interest among potential home buyers.”
“The fact that the HMI measure of current sales conditions has been over 70 for five consecutive months shows that there is continued demand for new construction,” said NAHB Chief Economist Robert Dietz. “However, builders are facing several challenges, such as hefty regulatory costs and ongoing increases in building material prices.”