Builder confidence in the construction of new, single-family units dipped slightly in March, but is still strong, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The Index reading for March was 70—an above-50 reading indicates more builders have a positive outlook than a negative one.
“Builders’ optimism continues to be fueled by growing consumer demand for housing and confidence in the market,” said Randy Noel, chairman of the NAHB, in a statement. “However, builders are reporting challenges in finding buildable lots, which could limit their ability to meet this demand.”
“A strong labor market, rising incomes and a growing economy are boosting demand for homeownership even as interest rates rise,” said Robert Dietz, chief economist of the NAHB. “With these economic fundamentals in place, the single-family sector should continue to make gains at a gradual pace in the months ahead.”
For the latest real estate news and trends, bookmark RISMedia.com.