Builder confidence in the market for new single-family homes jumped up by 21 points to 58 in June, according to the latest NAHB/Wells Fargo Housing Market Index released today. The index is derived from a monthly survey that the NAHB has been conducting for 30 years, in which any index reading above 50 indicates that more builders view conditions as good than as poor.
“As the nation reopens, housing is well-positioned to lead the economy forward,” says Dean Mon, NAHB chairman. “Inventory is tight, mortgage applications are increasing, interest rates are low, and confidence is rising. And buyer traffic more than doubled in one month even as builders report growing online and phone inquiries stemming from the outbreak.”
All of the HMI indices showed gains in June. The current sales conditions index rose by 21 points to 63 for June. The index measuring sales expectations rose by 22 to points to 68, and the index measuring prospective buyer traffic rose 22 points to 43.
Based on monthly average regional scores, the Northeast index rose by 31 points to 48, the South by 20 points to 62, the Midwest by 19 points to 51, and the West by 22 points to 66.
“Housing clearly shows signs of momentum as challenges and opportunities exist in the single-family market,” says NAHB chief economist Robert Dietz. “Builders report increasing demand for families seeking single-family homes in inner and outer suburbs that feature lower-density neighborhoods. At the same time, elevated unemployment and the risk of new, local virus outbreaks remain a risk to the housing market.”
