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Existing Home Shortage Boosts New Home Sales, Builder Confidence

Existing Home Shortage Boosts New Home Sales, Builder Confidence

April 17, 2023
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The index that measures the confidence of new home builders in the market for their product inched slightly higher again in April. The National Association of Home Builders (NAHB) says the NAHB/Wells Fargo Housing Market Index (HMI) rose 1 point to 45 as sales continue to be supported by the lack of pre-owned homes available for sale. NAHB’s chief economist Robert Dietz said, “ Currently, one-third of housing inventory is new construction, compared to historical norms of a little more than 10 percent . More buyers looking at new homes, along with the use of sales incentives, have supported new home sales since the start of 2023.” “While AD&C [acquisitions, development, and construction] loan conditions are tight, there is not significant evidence thus far that pressure on
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