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NEW CONSTRUCTION RESULTS IN SOLID GAIN IN BUILDER CONFIDENCE
Pinterest
May 17, 2023
The National Association of Home Builders reported this week that limited existing U.S. housing inventory, which has put a renewed emphasis on new construction, resulted in a solid gain for builder confidence in May 2023. This comes as the industry continues to face several challenges, including building material supply chain disruptions and tightening credit conditions for construction loans.
Builder confidence in the market for newly built single-family homes in May rose five points to 50, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today. This marks the fifth straight month that builder confidence has increased and is the first time that sentiment levels have reached the midpoint mark of 50 since July 2022.
"New home construction is taking on an increased role in the marketplace because many home owners with loans well below current mortgage rates are electing to stay put, and this is keeping the supply of existing homes at a very low level," said NAHB Chairman Alicia Huey.
"While this is fueling cautious optimism among builders, they continue to face ongoing challenges to meet a growing demand for new construction. These include shortages of transformers and other building materials and tightening credit conditions for residential real estate development and construction brought on by the actions of the Federal Reserve to raise interest rates."
For the full story, visit WorldPropertyJournal.com
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