Builder confidence rises to pre-pandemic levels

Home News Builder confidence rises to pre-pandemic levels

Washington, D.C.—In a strong signal that the housing market is ready to lead a post-COVID-19 economic recovery, builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July, according to the latest NAHB/Wells Fargo Housing Market Index (HMI). The HMI now stands at the solid pre-pandemic reading in March before the outbreak affected much of the nation.

“Builders are seeing strong traffic and lots of interest in new construction as existing home inventory remains lean,” said Chuck Fowke, National Association of Home Builders (NAHB) chairman.  “Moreover, builders in the Northeast and the Midwest are benefiting from demand that was sidelined during lockdowns in the spring. Low interest rates are also fueling demand, and we expect housing to lead an overall economic recovery.”

“While the housing market is clearly rebounding, challenges exist,” said Robert Dietz, NAHB chief economist. “Lumber prices are at a two-year high and builders are reporting rising costs for other building materials while lot and skilled labor availability issues persist. Nonetheless, the important story of the changing geography of housing demand is benefiting new construction. New home demand is improving in lower density markets, including small metro areas, rural markets and large metro exurbs, as people seek out larger homes and anticipate more flexibility for telework in the years ahead. Flight to the suburbs is real.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All the HMI indices posted gains in July. The HMI index gauging current sales conditions jumped 16 points to 79, the component measuring sales expectations in the next six months rose seven points to 75 and the measure charting traffic of prospective buyers posted a 15-point gain to 58.

Looking at the monthly average regional HMI scores, the Northeast surged 22 point to 70, the Midwest jumped 18 points to 68, the South increased 10 points to 73 and the West increased 14 points to 80.

Must Read

WATCH: Cali Vinyl Longboards taps surf culture

https://www.youtube.com/watch?v=F2X6jJV33ks Cali went back to its roots with its Cali Vinyl Longboards collection and tapped the surf culture that inspired the company’s origin.

Torlys to display new products at TISE 2022

Toronto, Ontario—Torlys is hosting the Torlys XPedition, an immersive booth experience showcasing its newest product innovations including Torlys Everest Hardwood and Cork at Surfaces,...

First Women’s Leadership Conference kicks off at TISE 2022

Last Vegas—The inaugural Women’s Leadership Conference is kicking off at The International Surfaces Event (Surfaces) 2022. It will take place on Monday, January 31,...

Mercier Wood Flooring introduces new hardwood looks

Las Vegas—Canada-based Mercier Wood Flooring launched new flooring designs to meet the expectations of designers and homeowners looking for modern yet authentic and durable...

‘Women of the Flooring Business’ continues rapid evolution

When Michelle Winters, Lisbeth Calandrino and Rachel Berlin founded the Women of the Flooring Business (WOFB) social media group back in 2019, the main...

Mobile Marketing, QFloors partnership streamlines services 

South Jordan, Utah—QFloors and Mobile Marketing have announced a new integration partnership. The partnership means retailers have a more seamless connection between their website,...
Some text some message..
X