The monthly confidence level among the country’s home builders was hurt because of expected traffic and weakness in the South.
July saw a seasonally adjusted
Housing Market Index of 59. The index was down one point from the previous month’s number.
The Housing Market Index, which reflects single-family home activity, has increased only two months this year: January and June.
Data from the National Association of Home Builders and Wells Fargo, which publish the index, indicate that this month’s index is also down from 60 a year earlier.
NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Illinois, said the housing market is slowly coming back, though some markets are struggling.
“For the past six months, builder confidence has remained in a relatively narrow positive range that is consistent with the ongoing gradual housing recovery that is underway,” Brady said. “However, we are still hearing reports from our members of scattered softness in some markets, due largely to regulatory constraints and shortages of lots and labor.”
National builder confidence was dragged down by the South, where the index tumbled four points from June to 60.
A one-point month-over-month gain left the index at 56 in the Midwest and 79 in the West.
The Northeast HMI saw a three-point ascension to 42.
The national NAHB/Wells Fargo Housing Market Index gauges three aspects of builder perception as “good,” “fair” or “poor.”
One of those aspects is the current level of traffic from prospective buyers, with that index retreating one point from June to 59.
The index for current single-family sales slipped a point to 63 in July.
Builder confidence was down most when it came to single-family sales expected over the next six months, with that component tumbling three points to 66 this month.
