April 19, 2017 (STLRealEstate.News) The American construction industry has been very busy trying to keep up with real estate demand as of late. Participating in unprecedented amounts of home-building since the Great Recession in 2016, the trend is expected to continue thoroughly throughout the year of 2017. A survey of confidence among American home-builders did, however, fall a bit towards the end of March – but remains optimistic heading into the spring. New data from the National Association of Home Builders came to the conclusion this past week.
The association also stated that its housing-market index fell by three points to 68 at the beginning of April. The index reached 71 in March, its strongest reading since June 2005. Economist went on to state that they do expect home-builder confidence for the month of April to hit 70, according to a poll that was conducted by Thomson Reuters. Last month’s results in February were the highest on the index in the past 12 years as President Donald Trump has been viewed as having a significant impact on rolling back the regulations in the industry today. The results have been hyperactive activity by industry companies.
In this same report put out by the association, the trade groups’ chief economist, Robert Dietz, stated, “there is continued demand for new construction – however, builders are facing several challenges right now, including hefty regulatory costs and ongoing increases in building material prices. Even with this month’s modest drop, builder confidence is on very firm ground, and builders are reporting strong interest among potential home buyers.”
All three levels of the index did confirm a drop towards the end of March into early April but stated that they are maintaining healthy levels nonetheless. The components measuring current sales fell three points, while index charting sales expectations dropped three points as well.