June Builder Confidence Falls Slightly

Window & Door
June 17, 2019
Markets

Builder confidence in the market for newly built single-family homes fell two points in June, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index. Sentiment levels have held at a solid range for the past five months.

"While demand for single-family homes remains sound, builders continue to report rising development and construction costs, with some additional concerns over trade issues," says Greg Ugalde, NAHB chairman .

"Despite lower mortgage rates, home prices remain somewhat high relative to incomes, which is particularly challenging for entry-level buyers," says Robert Dietz, NAHB chief economist. "And while new home sales picked up in March and April, builders continue to grapple with excessive regulations, a shortage of lots and lack of skilled labor that are hurting affordability and depressing supply."

All the HMI indices inched lower in June. The index measuring current sales conditions fell one point, the component gauging expectations in the next six months moved two points lower and the metric charting buyer traffic dropped one point.