Homebuilder confidence was up slightly to end the year on a high note, according to the latest data from the National Association of Home Builders…(NAHB)
- M-O-M: Homebuilder confidence was up one point to 84 tying the high for the year that we saw back in February. This is the fourth consecutive increase for the index.
- Y-O-Y: Confidence was down two points from the 86 reported in December 2020.
BEAT THE STREET: Economists had projected confidence would hold at 83.
Regionally, the South continues to dominate as the region saw its confidence level climb two points to the highest level all year at 89.
- The West held on to the number two slot despite one point decline to 87 followed by the Northeast that saw a dramatic 10 point jump to 79, and the Midwest was down one point at 74.
NOTE: Builder confidence in current single-family sales saw a slight increase to 90 in December while sales for the next 6 months and buyer traffic held strong at 84 and 70, respectively.
Robert Dietz, NAHB Chief Economist, said building activity has increased but it is not smooth sailing quite yet…
- “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 2019 level, we expect higher interest rates in 2022 will put a damper on housing affordability.”