The National Association of Home Builders reported builder confidence rose 1 point to 47 for the month ending April, 2014. March’s confidence number was revised down to 46. The index has been essentially flat for 3 months after rising for much of 2013.
The survey has several segments including current sales conditions (flat at 51), traffic of prospective buyers (flat at 32), and expectations for future home sales (up 4 pts to 57). I think this makes sense. Despite low interest rates and high affordability, the labor market is healing slowly in most areas and the economy is thawing from a long winter.
Despite the slow start to the year, I think the finish will be strong. There is pent up demand for new homes and a relatively low selection of them. We still aren’t building homes fast enough and are facing a severe shortage of new homes.
For the full report visit the National Association of Home Builders.
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