Builder confidence declined for the third straight month in March according to figures released today by the National Association of Home Builders.
The NAHB/Wells Fargo Housing Market Index monitors new home sales, prospective buyer showroom traffic and builder predictions of future sales. According to NAHB Chairman Rick Judson, builders’ “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.”
The NAHB chief economist explained that the housing industry “infrastructure” needs to recover along with consumer demand. That “infrastructure” includes factors like labor and developed lot supply.