The NAHB released its latest Housing Market Index March 18th and it showed a much sunnier outlook on behalf of builders when compared with this time last year. The component in the Housing Market Index representing builder traffic jumped three points in March to 35 and the component reflecting sales expectations from builders increased one point to 51. A total score of the three components over 50 denotes that more builders view market conditions as good versus poor. Overall builder confidence slipped two points to 44 making it the third consecutive month of decreases.
NAHB chairman Rick Judson pointed to logistical issues such as the lack of availability of lots and the cost of materials as two of the reasons for the builders concern. The skilled trades manpower component also played a part in this latest decline in the Housing Market Index. NAHB 
chief economist David Crowe was quoted as stating “During the Great Recession, the industry lost home building firms, building material production capacity, workers who retreated to other sectors and the pipeline of developed lots.” Indeed, after the market began to crash many employees of builders, even entire companies were forced to look elsewhere for employment. Whether it was layoff of personnel or smaller builders shuttering their doors to explore other options such as commercial construction, the new home industry lost significant depth in this area.
Another concern of US homebuilders reflected in the Housing Market Index is the persistence of credit availability being limited for some consumers. Gone are the days of stated income loans, and consumers are wary of variable interest rate and interest only loans. The criteria are strict even for well qualified buyers now. This has not gone unnoticed by the homebuilding community. Even with the increased demand for new construction, the Housing Market Index for March sends the clear message that there are still hurdles in the path to a full housing recovery.
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