Home builder confidence nears eight-year high

“What’s more, firming home prices and thinning inventories of homes for sale are contributing to an increased sense of urgency among those who are in the market.”

Two of the indexes three components posted gains in August. 

The component gauging current sales conditions rose 3 points to 62, while sales expectations in the next six months gained a single point to 68. The index measuring traffic of prospective buyers held unchanged at 45.

“Builder confidence continues to strengthen along with rising demand for a limited supply of new and existing homes in most local markets,” said David Crowe, NAHB’s chief economist. 

“However, this positive momentum is being slowed by the ongoing headwinds of tight credit and low supplies of finished lots and labor.”

All but one region saw a gain in its three-month moving average in August. 

The Midwest and West each posted 6-point increases, to 60 and 57, respectively, while the South gained 4 points, moving to 54 and the Northeast was unchanged at 39.