Builder Confidence Faces Uncertainty in March

March 25, 2013

Housing Market IndexFollowing eight months of gains through 2012, the first three months of 2013 have seen stagnation in the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), a measure of builder sentiment. The HMI value slipped to 44 this month, despite many builders reporting increased demand for new homes in their markets.

. “Although many of our members are reporting increased demand for new homes in their markets, their enthusiasm is being tempered by frustrating bottlenecks in the supply chain for developed lots along with rising costs for building materials and labor. At the same time, problems with appraisals and credit availability remain considerable obstacles to completing deals,” noted NAHB Chairman Rick Judson, a home builder from Charlotte, N.C.

Despite these problems, the NAHB reports that builders are much more optimistic in 2013 than they were a year ago. Despite the overall drop in the HMI, the component gauging sales expectations in the next six months and the component gauging traffic of prospective buyers both posted gains of one point to 51 and three points to 35 in March. These numbers indicate a glimmer of hope for surpassing the current growing pains to result in a stronger 2013!

Categories: Economy, Economy AOI

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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