Homebuilder confidence fell slightly in June as the market gradually improves but continues to face hurdles to more robust growth.
Sentiment dropped two points to 67 from May’s reading of 69, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index released on Thursday.
“Builder confidence levels have remained consistently sound this year, reflecting the ongoing gradual recovery of the housing market,” said NAHB Chairman Granger MacDonald, a homebuilder and developer from Kerrville, Texas.
{mosads}The index gauges builder perceptions of current single-family home sales and sales expectations for the next six months. The survey also asks builders to rate traffic of prospective buyers.
Any number over 50 indicates that more builders view conditions as good than poor.
“As the housing market strengthens and more buyers enter the market, builders continue to express their frustration over an ongoing shortage of skilled labor and buildable lots that is impeding stronger growth in the single-family sector,” said Robert Dietz, NAHB chief economist.
Confidence in current sales conditions fell two points to 73, the index for sales expectations in the next six months dropped two points to 76 and the component measuring buyer traffic slipped two points to 49.
Regionally, the three-month moving averages for the Midwest and the South each fell one point to 67 and 70, respectively.
The Northeast (46) and the West (76) each dropped two points.