Current builder confidence in the market for new homes fell this month, according to a survey by the National Assn. of Home Builders, which said demand was not the problem.
The NAHB/Wells Fargo Housing Market Index, released Monday, blamed a limited supply of ready-to-build-lots, rising materials and labor costs, along with the tougher credit and appraisal standards that prevail in the aftermath of the financial crisis.
The survey touched on builders’ frustrations at a time when Americans are feeling more confident about the economy and housing.
"Many of our members are reporting increased demand for new homes in their markets,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C.
Despite the current dissatisfaction, the longer-term picture is improving, the group said. A gauge of the outlook for sales over the next six months was at its strongest point in more than six years.