According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence in the American market for newly-built single-family homes fell three points to a level of 64 in September from a downwardly revised August reading of 67.
NAHB chairman Granger MacDonald, a homebuilder and developer from Kerrville, Texas, says that the recent hurricanes have intensified members’ concerns about the availability of labour and the cost of building materials.
“Once the rebuilding process is underway, I expect builder confidence will return to the high levels we saw this spring,” says Granger.
NAHB chief economist Robert Dietz says that builder confidence is still on very firm ground, despite the drop in August.
“With ongoing job creation, economic growth and rising consumer confidence, we should see the housing market continue to recover at a gradual, steady pace throughout the rest of the year,” says Robert.
The HMI component that gauges current sales conditions fell four points to 70 and the index charting sales expectations for the next six months dropped four points to 74. The component measuring buyer traffic slipped a single point to 47.
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