Housing

Homebuilder confidence stalls over fiscal uncertainty

by Vicki Needham - 10/16/13 5:07 PM ET

All three of the index’s three components each fell two points in October.

{mosads}The component gauging current sales conditions registered 58, while the component gauging sales expectations in the next six months posted a reading of 62 and the component gauging traffic of prospective buyers was 44.

“Builder optimism remains above 50 and we are still seeing signs of pent-up demand in many markets across the country,” said NAHB Chairman Rick Judson, a homebuilder from Charlotte, N.C.

“This slight dip in builder sentiment is the result of continuing challenges in the marketplace with regard to the cost and availability of labor and lots and uncertainty in Washington.”

Looking at the three-month moving averages for regional index scores, the South held steady at 56, the West declined a single point to 60 and the Northeast fell three points to 38. The Midwest posted a one-point gain to 64.

Meanwhile, the NAHB is estimating that housing starts hit about 900,000 Units in September.

Without any government data because of the shutdown, the housing group compiled its own report.

NAHB estimates that the seasonally adjusted annual rate of construction for single-family homes was between 620,000 and 630,000 units in September.

“The NAHB estimate of 875,000 to 900,000 total housing starts is based on continuing improvement in single-family starts and ongoing volatility in multifamily construction,” Crowe said.

“Single-family starts dipped in July but rebounded in August, and we expect continued strength in September,” he said.

“The Fed meeting in mid-September provided additional relief to builders and buyers that interest rates would remain near historic lows for the immediate future, encouraging consumers back into the housing market.”

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