Builder Confidence Shaken by Winter Storms

Winter weather has taken its toll on builder confidence in the single-family home market says the National Association of Homebuilders. Builders also expressed concern about labor shortage and scarcity of available lots. The NAHB/Wells Fargo Housing Market Index dropped 10 points to 46, with all three of the major components of the index falling in February. An indicator of 50 is the neutral mark for builder perception, a reading below 50 indicates that more builders view conditions as poor rather than good.

“Significant weather conditions across most of the country led to a decline in buyer traffic last month,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “Builders also have additional concerns about meeting ongoing and future demand due to a shortage of lots and labor.”