Skip to main content

Builder Confidence at Seven-Month High

Phil Hall
May 15, 2019
Builder confidence in the market for newly-built single-family homes remained unchanged in March at 62, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI)

Builder confidence in the market for newly-built single-family homes took a three-point rise to 66 in May, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) data. This marks the highest level of confidence since October 2018.
 
All the HMI indices posted gains in May: The index measuring current sales conditions increased by three points to 72, the component gauging expectations in the next six months inched up by one point to 72 and the metric charting buyer traffic saw a two-point rise to 49. Looking at the three-month moving averages for regional HMI scores, the Northeast posted a six-point gain to 57, the West increased two points to 71, the Midwest gained one point to 54, and the South rose a single point to 68.
 
“Builders are busy catching up after a wet winter and many characterize sales as solid, driven by improved demand and ongoing low overall supply,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn. “However, affordability challenges persist and remain a big impediment to stronger sales.”
 
But for those seeking newly-built homes, the search required more determination. The BuildFax Housing Health Report for April found single-family housing authorizations decreased by 8.23 percent year-over-year. The existing housing maintenance volume increased by 2.45 percent from one year earlier and the existing housing remodel volume dropped by 0.95 percent over the same period.
 
“Declines in single-family housing authorizations and maintenance activity have moved in unison for five months,” said BuildFax CEO Holly Tachovsky. “This April, we’re starting to see a split emerging with a rise in maintenance activity. While there is always a spotlight on new construction, maintenance is also a must-watch indicator–it reflects the health of the existing housing stock, which comprises 90 percent of all U.S. properties. This month’s maintenance gain is a positive sign amidst a housing slowdown and we’ll be watching whether this activity remains stable over time.”
 

 
Published
May 15, 2019
Federal Regulators Race To Address Cryptocurrency Risks

Cryptocurrency is quickly morphing into a volatile but widely embraced innovation, and federal regulators are racing to address the potential risks to consumers and the market. 

Industry News
Sep 24, 2021
MBA Initiative Seeks To Close Racial Homeownership Gap

Says its advocacy, partnerships & connections will help increase opportunities for minority borrowers

Industry News
Sep 24, 2021
Guaranteed Rate Opens New Branch In Southwestern Michigan

Guaranteed Rate expanded its presence in Southwester Michigan, after opening a new branch in St. Joseph

Industry News
Sep 22, 2021
Chinese Property Giant Evergrande Falters, Threatening U.S. Investors

On Monday, investors across three continents dumped their stocks, mainly out of fear that the world’s two largest governments — the United States and China — would undercut the beginnings of a global economic recovery. 

Industry News
Sep 22, 2021
Compass Mortgage Expands In Four Additional States

Compass Mortgage is now licensed in Virginia, Washington, North Carolina and South Carolina.

Industry News
Sep 22, 2021
Enact Holdings Completes IPO

Genworth Financial Inc. announced the completion of the initial public offering for its subsidiary Enact Holdings Inc.

Industry News
Sep 21, 2021