Builders are blaming lawmakers in Washington, D.C., for the mounting challenges facing the new-home sector.
“Policy and economic uncertainty is undermining consumer confidence,” said David Crowe, NAHB chief economist.
Despite the challenges, builder confidence held steady in November, with slightly more builders viewing market conditions as “good” rather than “poor,” according to the National Association of Home Builders/Wells Fargo Housing Market Index.
“The fact that builder confidence remains above 50 is an encouraging sign, considering the unresolved debt and federal budget issues cause builders and consumers to remain on the sideline,” Crowe said.
The NAHB/Wells Fargo index gauges builders’ perceptions of current single-family home sales, sales expectations for the next six months, and buyer traffic. A reading above 50 indicates that there are more builders who view conditions as good than poor.