Home builder sentiment strong at year’s end

Home News Home 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

Happy Feet, Welspun partner on charitable product offering

Dalton—Happy Feet International is expanding its offerings to include new products from Welspun Flooring where a portion of every Welspun sale will go toward...

Coverings releases 2023 education lineup

Orlando, Fla.—Coverings, the preeminent event for North America's ceramic tile and natural stone industry, unveiled a sneak peek of featured education for Coverings 2023,...

Tried and true digital marketing tips from the trade

As technology advances and more companies turn to the digital realm for their marketing needs, it’s important for companies to stay up-to-date on how...

John McGrath retires from INSTALL

Washington, D.C.—INSTALL has announced the retirement of its executive director, John T. McGrath Jr., who played a significant role in revolutionizing floorcovering installation training...

Cali updates BCXL collection

San Diego—In response to customer demand and shifting color trends, Cali is adding three new styles to its popular Cali Vinyl Builder’s Choice XL...

Schönox debuts new subfloor products

Florence, Ala.—Schönox HPS North America debuted two subfloor products in response to needs expressed by the professional installer community in the field with Schönox...
Some text some message..
X