Builder confidence among those in the market providing new single-family homes is steady, but standing still, according to the most recent data from the National Association of Home Builders.
On an index level, slightly more builders view market conditions as good than those who view conditions as poor, according to NAHB. November showed an index reading of 54, while any number greater than 50 is seen as positive. However, home buyers appear to be stalling slightly due to uncertainty in Washington.
“Given the current interest rate and pricing environment, consumers continue to show interest in purchasing new homes, but are holding back because Congress keeps pushing critical decisions on budget, tax and government spending issues down the road,” said NAHB Chairman Rick Judson. “Meanwhile, builders continue to face challenges related to rising construction costs and low appraisals.”
Given the government headwinds, the current demand for new homes is encouraging, the monthly survey of builders shows.
“Policy and economic uncertainty is undermining consumer confidence,” said NAHB Chief Economist David Crowe. “The fact that builder confidence remains above 50 is an encouraging sign, considering the unresolved debt and federal budget issues cause builders and consumers to remain on the sideline.”
Written by Elizabeth Ecker