Tiny hiccups in morale aside, American homebuilders will keep calm and carry on.
Homebuilder confidence for the single-family market decreased one point to 59 (out of a maximum 100) between June and July, the National Association of Home Builders posted Monday. Expectations for the next six months also fell by three points to 66, but they remain positive as sales have been slowly recovering since the recession.
The highest point of confidence since the recession was 65 in October. The slightly more pessimistic outlook can be attributed to regulatory constraints, the scarcity of lots and shortage of labor, Ed Brady, chair of the NAHB, said in a statement.
Steady growth will persist, however, thanks to low mortgages and high employment rates, according to Robert Dietz, chief economist of NAHB.
“The economic fundamentals are in place for continued slow, steady growth in the housing market,” Dietz said. “These factors should help to bring more buyers into the market as the year progresses.”
The builder confidence index is a metric for how likely they are to kick off construction on projects, which creates jobs and stimulates the sale of a range of home products and materials.
Meanwhile, existing home sales also recently saw a year-over-year dip. [NAHB] — Cathaleen Chen