WASHINGTON - Builder confidence in the market for newly built, single-family homes showed growth in June for all three index components measured on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
At the forefront is the component monitoring current sales conditions, which increased 6 points to 54. The component tracking sales expectations in the following six months picked up 3 points to 59, and the component gauging buyer traffic also grew by 3 to 36.
Overall, builder confidence moved up 4 points to 49. The figure stays 1 point below the turning point for what is considered good building conditions. 50 indicates that more builders view conditions as good than poor.
"Consumers are still hesitant, and are waiting for clear signals of full-fledged economic recovery before making a home purchase," said NAHB Chief Economist David Crowe. "Builders are reacting accordingly, and are moving cautiously in adding inventory."
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