US: Builder issues point to gradual housing growth - Wells Fargo

The NAHB/Wells Fargo Housing Market Index (HMI) fell 1 point from February’s downwardly-revised 71, marking the third consecutive drop since surging to an 18-year high of 74 in December, noted analysts from Wells Fargo. They pointed out that despite the decline the index still remains elevated. 

Key Quotes: 

“While builder confidence has fallen for three straight months, confidence remains exceptionally high. Confidence had surged in December, reflecting unseasonably mild weather and some bounce back in sales following last summer’s hurricanes.”

“The present sales index held steady at 77, while both future sales and buyer traffic fell. Housing demand remains strong, fueled by stronger job and income growth.”

“Unseasonably mild weather caused the HMI to spike in every region except the Northeast in December. While that gain has largely melted away, the West and South remain very strong.”