In the face of industry challenges, builder confidence continues to rise, according to a new survey just released by the National Association of Home Builders. In conjunction with Wells Fargo Bank & Company, the NAHB’s Housing Market Index is based on a survey conducted every month of the single-family market. The survey tasks respondents with rating market conditions for the sale of new homes both at the present time and over the course of the next half year. Any number over 50 indicates that builders view conditions as good rather than not good. Ten years ago, in the midst of the Great Recession, home builders gave both questions a dormant 14. That number had dramatically increased to 71 just preceding the Covid-19 outbreak, before dropping to 30. The latest response, at 80, shows a generally buoyant industry response that has been apparent for most of this year. The West is currently leading the positive response, with builders in the region giving conditions an 83 grade, followed by the South at 80. The response was significantly lower in the Northeast and Midwest, recording a 69 and 72 score respectively. The West, in fact, has remained the score leader throughout the entirety of this year, although that number has declined from a very strong 92 recorded in January. Despite those buoyant overall numbers, builders are not without concerns, said Chuck Fowke, NAHB chairman, in a statement. “Builders continue to grapple with ongoing supply chain disruptions and labor shortages that are delaying completion times and putting pressure on building materials and home prices,” Fowke remarked. NAHB has been conducting the Housing Market Index since 1985. Its first survey in January of that year revealed a rather lackluster 50 in response to current homebuilding conditions and prospects six months out. The lowest response was recorded in January of 2009 in one of the most challenging months of the Great Recession, with the index coming in at 8. By Garry Boulard
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