Home Builder Confidence Remains Steady

According a May, 2016 National Association of Home Builders/Wells Fargo report, builder sentiment has remained high and unchanged since February 2016, pointing to progress for the residential real estate industry. Builders surveyed rated their optimism at 58, with a score of 50 or above indicating positive market conditions.

Although the builders feel confident in the market, there is a discrepancy between their expectations and reality. Economists claim that housing starts remain slow and are not increasing enough to recover the housing market.

“There remains a big disconnect between what homebuilders are saying and what they are actually doing,” Joshua Shapiro, chief U.S. economist at MFR Inc. in New York, said in research note. “We expect housing starts to largely tread water” in coming months.

The report also indicates a rising six-month sales outlook, with a score of 65, up from 62, which supports the view of a recovering housing market. Read the full article, here.