Higher costs and a tight labor market has pushed homebuilder confidence to a 13-month low in August, according to the National Association of Homebuilders monthly report… (NAHB)
- Builder sentiment in the market for newly-built single-family homes fell 5 points to 75 in August and was down 3 points from the same time last year.
- August was the first month in the 70s since August of last year and was down from the record high of 90 we saw in November.
NOTE: Any number over 50 indicates that more builders view conditions as good than poor.
Regionally, the West continues to lead the way even with a 2 point drop to 85 followed by the South at 82 (-3), the Northeast at 74 (-1), and the Midwest at 68 (-2).
Robert Dietz, NAHB Chief Economist, says that even though higher costs and material access issues have resulted in lower levels of homebuilding they are hopeful going forward…
- “While these supply-side limitations are holding back the market, our expectation is that production bottlenecks should ease over the coming months and the market should return to more normal conditions.”
NOTE: Current sales conditions fell 5 points to 81 but the sales expectations in the next six months held steady at 81.