Homebuilder confidence in the newly constructed single-family market continues to rise, this month reaching its highest reading since October 2005, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
Lack of New-Home Construction
The index rose one point in September to a level of 62. Any reading above 50 indicates more builders view conditions as “good” than”poor.” The index measures builder perceptions over current single-family homes sales; sales expectations for the next six months; and traffic of prospective buyers. Broken out, the component measuring buyer traffic rose two points to 47 in September, while the component measuring current sales conditions rose one point to 67. Sales expectations dropped from 70 to 68 in September.
“The [index] shows that single-family housing is making solid progress,” says NAHB Chairman Tom Woods. “However, our members continue to tell us that they are concerned about the availability of lots and labor.”
The NAHB is projecting about 1.1 million total housing starts this year.
“Today’s report is consistent with our forecast, and barring any unexpected jolts, we expect housing to keep moving forward at a steady, modest rate through the end of the year,” says David Crowe, NAHB’s chief economist.
Many housing analysts recently have been pointing to a housing shortage – caused by a drastic slowdown in homebuilding activity – that’s pushing up home prices and rents too high in many markets. Homebuilding activity for all housing types is underperforming in about two-thirds of 146 metros recently measures, and has caused a significant drop in available homes for sale, according to the National Association of REALTORS®.
No comments:
Post a Comment