Dive Brief:
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A dwindling supply of land and a shortage of skilled labor have got homebuilders feeling down, the National Association of Home Builders reported on Monday.
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Builder confidence dropped by two points on the NAHB/Wells Fargo Housing Market Index in March, marking the fourth straight month of dampening spirits in the industry.
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NAHB Chief Economist David Crowe put a positive spin on the news Monday: “These obstacles notwithstanding,” he said in a press release, “we are expecting solid gains in the housing market this year, buoyed by sustained job growth, low mortgage rates and pent-up demand.”
Dive Insight:
On the index, a score higher than 50 indicates that more builders than not feel optimistic about the next few months. March’s score was 53, down from 55 last month, but still not on the negative side.
NAHB Chairman Tom Woods took an optimistic approach to the news. “Even with this slight slip, the HMI remains in positive territory, and we expect the market to improve as we enter the spring buying season,” he said in a press release.
