This year has been a roller coaster ride for the home building industry. After four months of consistent gains, confidence has fallen among U.S. home builders.
In September, an industry health index monitored and reported by the National Association of Home Builders reached a recent high of 59, the highest level it has seen since the housing bubble. The NAHB saw the index drop to 54 this month. To give this number some context, readings above 50 indicate that home builders consider sales conditions to be generally favorable.
There are a number of possible factors in this index decline. Following August's significant jump in new home sales, activity has been sluggish in part to price surges - price climbs that knocked many would be home buyers out of the market. The slow pace of the US economic recovery and slowed wage growth have contributed to October's decline as well.
Builder sentiment was high in the Midwest with a reading of 59, followed by the South with a reading of 58. The West came in at 57 with the Northeast's reading of 41 being the least optimistic.
Despite these numbers (particularly in the Northeast region), economists are still bullish on the housing market in the coming months. That’s good news for those who manufacture and distribute building materials, cement, insulation, and entry door systems. Job gains, growing demand and historically low mortgage rates all contribute to the optimism that prevails among economists, despite the slow rate of recovery.
Endura Products, Inc. manufactures entry door component systems that improve door construction, door installation and long-term performance in the home. Endura components improve functionality, maximize the seal between the door and the opening, and reduce air and water infiltration.