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Builders continue to get a boost from low inventory

Housing Wire

As existing home inventory continues to fall, builder confidence is on the rise, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) report, released Monday. The gauge measuring current sales conditions rose to 51, up two points month over month.

Inventory 384
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With little competition, homebuilders are feeling better

Housing Wire

Scores for each component of the homebuilder confidence survey are then used to calculate an index, with any number greater than 50 indicating that more homebuilders view conditions as favorable than not. The NAHB attributes the increase to the lack of existing home inventory shifting demand to the new home market.