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Builder Confidence Index May Of 2023

By
Real Estate Agent with Berkshire Hathaway Home Services Crest CDRE #01044712

On May 16, 2023, National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for newly built single family homes rose five points at 50 points in May of 2023.

The HMI component charting buyer traffic up two points to 33 points, the HMI present sales conditions gained five points at 56 points, and the HMI sales expectations index jumped seven points 57 points in May of 2023.

The three-month moving averages for regional HMI scores, Midwest higher two points to 52 points, Northeast unchanged 0 point at 45 points, South rose three points to 52 points, the West increased three points to 41 points in May of 2023.

NAHB Chief Economist Robert Dietz, stated “In March, 33% of homes listed for sale were new homes in various stages of construction. That share from 2000-2019 was a 12.7% average. With limited available housing inventory, new construction will continue to be a significant part of prospective buyers’ search in the quarters ahead.”

For complete more detailed information about NAHB Builder Confidence Index for May of 2023, please HERE

Posted by

John Pusa

Real estate agent, Glendale, CA

Better way to buy and sell real estate

Berkshire Hathaway Home Services Crest

Office (818) 441-8881

Mobile (818) 441-8881

4005 Foothill Blvd.

La Crescenta, CA. 91214

Comments (12)
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

In March, 33% of homes listed for sale were new homes in various stages of construction. That share from 2000-2019 was a 12.7% average. With limited available housing inventory, new construction will continue to be a significant part of prospective buyers’ search in the quarters ahead.

This is so important! 

Jun 01, 2023 06:19 AM
Ed (Edward) Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

With so little in inventory, new housing starts are bound to increase across the country.

Jun 01, 2023 06:31 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

It is interesting.  I know we need a lot more homes built, but it seems like high interest rates would be keeping builder confidence down.  I have invested in a small development and I am sure hoping interest rates drop some before they are ready to sell.  

Jun 01, 2023 06:36 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning John. Great numbers for homebuilders and yet, they could do more. With a bit of an uncertain economy, they would probably hold course. Thanks for the update.

Jun 01, 2023 07:34 AM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Lise Howe yes, in March, 33% of homes listed for sale were new homes in various stages of construction. Great fallow up statement about share from 2000-2019 was a 12.7% average. With limited available housing inventory, new construction will continue to be a significant part of prospective buyers’ search in the quarters ahead. I agree, this is so important! Thanks for the comment.

Jun 01, 2023 05:15 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Ed Silva you are right, with so little in inventory, new housing starts are bound to increase a lot across the country. Thanks for the comment.

Jun 01, 2023 05:16 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Ray Henson you are right, it is interesting that we need a lot more homes built, but it seems like high interest rates would be keeping builder confidence down. Great to know you have invested in a small development and we sure hope interest rates drop some before they are ready to sell. Thanks for the comment.

Jun 01, 2023 05:19 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Good evening Wayne Martin I agree, these are great numbers for homebuilders and they could do more. With a bit of an uncertain economy, they would probably hold course. You are welcome, and glad you find the report very helpful. Thanks for the comment.

Jun 01, 2023 05:21 PM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

When the builders are confident the market is usually good but I hate that they get greedy and take advantage of everyone else.

Jun 02, 2023 07:15 AM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Brian England you are right, when the builders are confident the market is usually good but some get greedy and take advantage of everyone else. I heard similar concerns about some builders gave a quote, then by the time the project is finished 50.0% higher from the original cost. Thanks for the comment.

Jun 02, 2023 01:02 PM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great post!  Thanks for sharing and enjoy your day!

Jun 03, 2023 06:46 AM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Kristin Johnston - REALTOR® you are welcome, and glad you find the report very helpful. Enjoy your day too! Thanks for the comment.

Jun 03, 2023 11:06 AM
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