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Posts Tagged ‘wells fargo index’

Labor and Lot Shortage could Hinder Housing Market Recovery

February 9th, 2016 Comments off

nahb_logoThe monthly National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reveals the cost and availability of labor remains the biggest hurdle for builders, and is expected to continue as a problem throughout this year. During the Great Recession tradespeople left the industry by the thousands because jobs were not available. Many found work as truck drivers.

According to builderonline, NAHB’s staffer Ashok Chaluvadi tells MHProNews,In 2013, 53% of builders rated labor as a significant problem, followed by 61% in 2014 and 71% in 2015. An expected skilled labor shortage can constrain an improving housing market.” 76 percent of builders anticipate the problem will carry over through 2016.

The second problem on builders’ minds is the cost and availability of developed lots. In 2013, this was rated as a significant problem by 46 percent of the contractors who responded to the survey. That grew to 55 percent in 2014 and three more percentage points to 58 percent in 2015. That share rose to 59 percent in 2016.

The lack of available skilled workers and buildable lots could spell trouble for the single-family housing market going forward. ##

(Image credit: National Association of Home Builders)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Builder Confidence for New Homes Slips in May

May 18th, 2015 Comments off

house building  comstock premiumAccording to the National Association of Home Builders (NAHB) Wells Fargo Index, builder confidence for newly built single-family homes has fallen four out of the last five months, dropping to 54 this month from 56 in April. Any number above 50 indicates builders regard conditions as good.

According to bloomberg, given the continuing low interest rate and the improving job market, the drop was somewhat surprising, although it explains why builders like D.R. Horton Inc. are offering more lower-priced homes.

Ryan Sweet, senior economist at Moody’s Analytics Inc. said, We had a string of poor economic data that may have weighed on sentiment. The fundamental drivers of housing demand support a pickup in the second half. Builders’ collective psyche remains fairly solid.

Builders’ gauge of prospective buyers fell one point to 39; the index of current single-family home sales slipped two points to 59, while builders’ outlook for the coming six months rose a point to 64.

Regionally, MHProNews has learned, the West gained one point to 56, the gauges for the South and Northeast did not change, while the Midwest fell to 51 this month from 55. ##

(Photo credit: comstockpremium)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNws.