More good news for the Central Florida real estate market as the National Association of Home Builders reported home builder sentiment rises to 49 in June, just one point shy of the threshold for what is considered good building conditions. This increase beats the estimate of 47 and is an indicator that builders are expecting sales to continue to increase in the months ahead as the summer home buying season gets into full swing.
If you, or someone you know, is considering buying/building a new home don't risk trying to do it alone. Naturally, builders have staff working in their model homes trained to negotiate the best deal for the builder and you should have representation on your side, too. Dream Builders Realty has vast experience in representing the Buyer's interest when it comes to new construction and we would welcome the opportunity to help you navigate the complexities associated with buying/building a new home.
This press release originally appeared on the National Association of Home Builders' Newsroom on June 16, 2014 here. You can also see how this compares to builder sentiment in April.
Builder Confidence Rises Four Points in June
June 16, 2014
Builder confidence in the market for newly built, single-family homes rose four points in to reach a level of 49 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. It remains one point shy of the threshold for what is considered good building conditions.“After several months of little fluctuation, a four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “However, builders are facing strong headwinds, including the limited availability of labor.”
“Consumers are still hesitant, and are waiting for clear signals of full-fledged economic recovery before making a home purchase,” said NAHB Chief Economist David Crowe. “Builders are reacting accordingly, and are moving cautiously in adding inventory.”
Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
All three index components posted gains in June. Most notably, the component gauging current sales conditions increased six points to 54. The component gauging sales expectations in the next six months rose three points to 59 and the component measuring buyer traffic increased by three to 36.
Looking at the three-month moving averages for regional HMI scores, the South and Northeast each edged up one point to 49 and 34, respectively, while the West held steady at 47. The Midwest fell a single point to 46.
Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.
