Builder survey shows gains

The latest BTIG/HomeSphere home builder survey shows that business conditions are positive heading into the spring selling season. 

Survey results indicate that both sales and traffic indicators remained healthy from February to March. 

For the fourth straight month, the percentage of builders reporting a positive year-over-year increase in traffic moved ahead. In March, the percentage was 46%, compared to 41% last month, and up significantly from just 29% in March 2023. 

Sales also increased, with 41% of respondents reporting year-over-year increases in sales compared to just 27% last year. BTIG said this is the highest reading since March 2022. 

More builders also reported better-than-expected sales (37%) and traffic (37%) compared to worse-than-expected sales (15%) and traffic (17%). Incentive use remains mixed. 

BTIG economist Carl Reichardt said he sees this month’s results as largely positive. 

“The current operating environment remains buoyed by a lack of existing home inventory,” Reichardt said.

Based on these findings, Reichardt predicts the NAHB/Wells Fargo Housing Market Index (HMI), expected April 15, will come in at least as strong as last month’s reading of 51. 

BTIG conducts a monthly electronic survey of approximately 75-125 small- to mid-sized homebuilders that sell, on average, 25-100 homes per year throughout the nation. Builders are asked about sales, traffic, and cost trends on a year-over-year and month-over-month basis. 

The firm also asks builders about their expectations and whether field trends are ahead of, in line with, or below those expectations.

Survey respondents range from CEOs of building companies to operations managers,