On Thursday, the National Association of Home Builders said that its Housing Market Index dropped 2 points to 67 from 69 in May. Economists had expected the index to be 70. Any reading above 50 indicates that more builders view conditions as good.
The three components of the index all fell in June. Current sales conditions declined 2 points to 73, while sales expectations over the next six months dropped 2 points to 76. The component measuring buyer traffic was down 2 points to 49.
In addition, the three-month moving average in the Midwest and South both decreased 1 point to 67 and 70, separately. The Northeast and West was down 2 points to 46 and 76, respectively.
In March, the Builder’s Builders’ Housing Market Index reached 71, which is the highest level since June 2005.
“As the housing market strengthens and more buyers enter the market, builders continue to express their frustration over an ongoing shortage of skilled labor and buildable lots that are impeding stronger growth in the single-family sector,” said Robert Dietz, the Chief Economist of the National Association of Home Builders.