Homebuilder confidence surprisingly dipped to start the year, according to the latest data from the National Association of Home Builders…(NAHB)
- M-O-M: Homebuilder confidence fell one point to 83 in January.
- Y-O-Y: Confidence was unchanged from the same time one year ago.
SWING & A MISS: Economists had projected the index would remain unchanged at 84.
Concern about the future led the decline for the month with single-family sales for the next 6 months falling two points to 83 in January…
- The traffic of prospective buyers also saw a two-point decline falling to 69.
- Current confidence remained unchanged at 90.
The West overtook the South to take the top regional spot with a one-point gain to 88 in January…
- The South fell two points to 87, the Northeast fell two points to 74, and the midwest saw a big nine-point drop to 71 to start the year.
As I reported yesterday, demand was holding strong along and record-low inventory levels indicated that builder confidence would remain strong. It is important to remember that any reading over 50 is considered good, so an 84 historically is nothing to lose sleepover. In fact, the reason for the decline has very little to do with the housing market itself. Robert Dietz, NAHB Chief Economist, said this is all about supply chains…
- “While lean existing home inventory and solid buyer demand are supporting the need for new construction, the combination of ongoing increases for building materials, worsening skilled labor shortages and higher mortgage rates point to declines for housing affordability in 2022.”