LoginHome builder confidence in the market for single family home construction in the U.S. declined again in April 2013, according to the National Association of Home Builders (NAHB) Housing Market Index (HMI). The HMI dipped to 42 points during the month, down two points from the index reading of 44 in March. Builders have been dealing in increasing material costs and labor shortages throughout early 2013.
April is the third consecutive month the index has declined. Any reading below 50 is indicative of a negative outlook among home builders.
"Supply chains for building materials, developed lots and skilled workers will take some time to re-establish themselves following the recession, and in the meantime builders are feeling squeezed by higher costs and limited availability issues," said NAHB Chief Economist David Crowe.
Though home builders are concerned about the future of the housing market, construction in housing has been increasing, according to Market Watch. New home construction edged up in March 2013 to 933,000 homes from 917,000 during the previous month. The survey also notes that housing starts have been on the upswing over the last year and have increased 28 percent over 2012. Though improved, starts remain below their pre-housing bubble levels of 2.3 million in 2006.