The National Association of Home Builders/Wells Fargo Housing Market Index fell to 64 in June, up two points from May, continuing a solid low to mid 60s performance from the last five months. Home builders cited rising development and construction costs, with some additional concerns over trade issues, among the chief reasons for the slight decrease.
“While demand for single-family homes remains sound, builders continue to report rising development and construction costs, with some additional concerns over trade issues,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn.
All three HMI components posted slight declines in June. The component measuring current sales conditions fell one point to 71. The component measuring sales expectations in the next six months fell two points to 70, and the component measuring buyer traffic fell one point to 48.
Looking at the three-month moving averages for regional HMI scores, the Northeast posted a three-point gain to 60 and the Midwest was also up three points to 57. The West held steady at 71 and the South fell a single point to 67.
Read the NAHB release.
