Home builder sentiment strong at year’s end

HomeNewsHome builder sentiment strong at year's end

builderWashington D.C.—Despite inflation concerns and ongoing production bottlenecks, home builder confidence edged higher for the fourth consecutive month on strong consumer demand and limited existing inventory, according to the National Association of Home Builders (NAHB).

Builder sentiment in the market for newly built single-family homes moved one point higher to 84 in December, according to the NAHB/Wells Fargo Housing Market Index (HMI) released today. This ties the highest reading of the year that was posted in February.

“While demand remains strong, finding workers, predicting pricing and dealing with material delays remains a challenge,” said Chuck Fowke, NAHB chairman. “Policymakers need to work on supply chain improvements and controlling costly inflation. Addressing lumber tariffs would be a good place to start.”

“The most pressing issue for the housing sector remains lack of inventory,” said Robert Dietz, NAHB chief economist. “Building has increased but the industry faces constraints, namely cost/availability of materials, labor and lots. And while 2021 single-family starts are expected to end the year 24% higher than the pre-COVID-19 2019 level, we expect higher interest rates in 2022 will put a damper on housing affordability.”

Derived from a monthly survey that NAHB has been conducting for 35 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.

According to NAHB, the HMI index gauging current sales conditions rose one point to 90 and the gauge charting traffic of prospective buyers also posted a one-point gain to 70. The component measuring sales expectations in the next six months held steady for the third consecutive month at 84.

Looking at the three-month moving averages for regional HMI scores, the Northeast rose four points to 74, the Midwest posted a two-point gain to 74 and the South and West each posted a three-point rise to 87, respectively.

Must Read

Crossville to showcase indoor/outdoor tile at Coverings

Atlanta—Crossville, an AHF Products brand, will showcase several tile collections at Coverings 2024, held here April 22-25. Crossville’s booth (#7048) at Coverings 2024 will be...

Tarkett launches non-PVC Collective Pursuit

Solon, Ohio—Global flooring manufacturer Tarkett has launched a non-PVC plank and tile flooring collection, as part of the company’s holistic approach to helping organizations...

Retailers React: What steps have you taken to safeguard your business against a cyberattack?

Every two weeks, FCNews seeks out flooring retailers across the country to offer their advice on hot topics of the day. This week, we...

i4F’s Ceramic Click technology enters the market

Turnhout, Belgium—i4F has joined forces with the Akgün Group-Duratiles to bring a clickable floating floor installation system to the world of ceramics. The...

Wuxi Boda adopts Unilin’s Matte Bevel technology

Waregem, Belgium—Wuxi Boda Bamboo and Wood Industry Co., Ltd. (Wuxi Boda)—in the wake of Novalis—has started the mass production of Unilin's Matte Bevel technology....

Ceramic: Differentiation via versatility

Indoors. Outdoors. Floors. Walls. Pool surrounds. Countertops. Ceramic Tile is the most versatile product in the industry with the ability to clad nearly every...
Some text some message..
X