New home builders confidence drops

The combination of increased demand, and low supply of existing homes is motivating builders to get new homes ready faster. Builders confidence has fallen due to demand exceeding supply for newly constructed homes, finding good land sites on which to build, price increases in building materials, and the difficulty of getting enough skilled labor. The improving job market, low mortgage rates, and rising home values fueled the existing home sales market to a 16% increase in January. Even with all these challenges, builders have started work on more homes last year consistent with the 2008 numbers.