The growing confidence of Florida developers in the market for new single-family homes has been growing for the seventh month in a row, despite higher construction costs, interest rates, and a shortage of plots. This was reported by the National Association of Home Builders.
NAHB/Wells Fargo Housing Market Index (HMI) rose one point to 56, the highest reading since June 2022. Any number above 50 indicates that more and more builders consider the conditions "good" rather than "bad".
According to experts, the lack of stocks in the secondary market means that potential home buyers continue to look for new homes in even greater numbers. At the same time, developers are concerned about rising mortgage rates approaching 7%, and continue to struggle with supply-side problems, including a constant shortage of electrical transformer equipment and growing concerns about the availability of plots.
The share of developers lowering housing prices fell to 22% in July from 25% in June.
The HMI indicator includes three components. The component measuring current sales conditions increased by one point to 62. The indicator measuring sales expectations in the next six months dropped by two points to 60. The component measuring the traffic of potential buyers increased by three points to 40.