NAHB's Housing Market Index flat, but remains positive despite political uncertainty, construction costs - The Business Journals

NAHB's Housing Market Index flat, but remains positive despite political uncertainty, construction costs - The Business Journals

Kent Hoover

Washington Bureau Chief

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Home builders remain kind of confident in the market for new single-family homes, despite policy uncertainties in Washington, D.C., and rising construction costs.

The Housing Market Index compiled by the National Association of Home Builders remained at 54 in November. This marked the sixth consecutive month that more home builders viewed market conditions as good rather than poor.

That's "an encouraging sign, considering the unresolved debt and federal budget issues cause builders and consumers to remain on the sideline," said NAHB Chief Economist David Crowe.

The survey asked builders to rate current sales, sales expectations, and traffic of prospective buyers.

Current sales conditions stayed at 58, while expectations for future sales fell one point to 60. Buyer traffic was the index's worst-performing component, dropping one point to 42.

"Given the current interest rate and pricing environment, consumers continue to show interest in purchasing new homes, but are holding back because Congress keeps pushing critical decisions on budget, tax and government spending issues down the road," said NAHB Chairman Rick Judson, owner of Evergreen Development Group in Charlotte, N.C. "Meanwhile, builders continue to face challenges related to rising construction costs and low appraisals."