Despite slip in confidence, US homebuilders remain optimistic

National Association of Home Builders post 1% decrease in confidence in July

Jul.July 18, 2016 02:00 PM

From the New York website: 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

Related Articles


US homebuilder confidence drops slightly from 18-year high

Builder confidence reaches its highest reading since 2005

US builder confidence in single-family homes hits 11-year high

Tepid construction in September points to multifamily tumble

National home builder confidence nears pre-recession levels in September

Trump plays to homebuilders at NAHB event in Miami Beach

US homebuilder confidence sags in February

LA Controller Ron Galperin

Controller Ron Galperin on the untapped potential of LA’s massive property portfolio