The National Association of Home Builders (NAHB) tells MHProNews.com builder confidence as measured by the NAHB/Wells Fargo Housing Market Index (HMI) fell one point to 29 in March after five months of increase. A score of 50 or better indicates more builders see the market as good rather than poor. Based on builders’ perceptions of current construction of new, single-family homes, and rating of prospective buyers, the HMI index has been used for 20 years to gauge builder expectations. NAHB Chief Economist David Crowe says, “Builder confidence is now twice as strong as it was six months ago, and the West was the only region to experience a decline this month following an unusual spike in February.” Crowe also notes tight credit and the inventory of distressed properties continues to haunt the new home market. Regionally for March, the Northeast rose five points to 25, two points to 32 in the Midwest, two points to 27 in the South, but dropped 10 points in the West after a gain of 22 points the previous month.
