Builder confidence in the newly built single-family market soared to a 12-year high this month, according to the National Association of Home Builders/Wells Fargo Housing Market Index
. The index rose six points to a 71 reading, the highest level since June 2005.
Builders are showing more confidence over current sales conditions, sales expectations over the next six months, and current buyer traffic.
Also, "builders are buoyed by President Trump's actions on regulatory reform, particularly his recent executive order to rescind or revise the waters of the U.S. rule that impacts permitting," says NAHB Chairman Granger MacDonald.
Builder confidence seems to be growing the most in the Midwest, which rose three points to a 68 reading in March. The South saw a one point increase to 68, while the Northeast decreased one point to a 48 reading on the index. The West decreased three points to 76. (Any number above 50 indicates that more builders view conditions as good than poor.)
"While builders are clearly confident, we expect some moderation in the index moving forward," says NAHB Chief Economist Robert Dietz. "Builders continue to face a number of challenges, including rising material prices, higher mortgage rates, and shortages of lots and labor."
Source: National Association of Home Builders