While builder confidence for newly built, single-family homes increased four points in June, it still remains one point below the level that indicates a good building climate, according to the National Association of Home Builders' Housing Market Index.
The index combines three figures-perceptions and expectations of single-family home sales and the traffic of prospective buyers. A score above 50 means more builders think conditions are positive, not negative. While current sales increased six points to 54 and sales expectations rose three points to 59, the traffic component is at 36 points and brought the index down.
"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."
