The National Association of Home Builders (NAHB) released its monthly home builder survey for June, showing builder confidence in the market for newly constructed single-family homes was the highest reading since January 2016.
According to the NAHB, builder confidence rose two points, after holding steady for the past four months.
All three NAHB/Wells Fargo Housing Market Index (HMI) components had risen in June.
* Current sales conditions rose one point to 64
* Sales expectations in the next six months increased five points to 70
* buyer traffic climbed three points to 47.
The NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. had said,
“Builders in many markets across the nation are reporting higher traffic and more committed buyers at their job sites. However, our members are also relating ongoing concerns regarding the shortage of buildable lots and labor and noting pockets of softness in scattered markets.”
“Rising home sales, an improving economy and the fact that the HMI gauge measuring future sales expectations is running at an eight-month high are all positive factors indicating that the housing market should continue to move forward in the second half of 2016,” said NAHB Chief Economist Robert Dietz.