NAHB Housing Market Index declined 5 points in August
The National Association of Homebuilder’s/Wells Fargo Housing Market Index declined by 5 points in August to 75, the lowest reading since July 2020. Any reading above 80 signals strong demand. The index can range between 0 and 100 with any print over 50 indicating positive sentiment.
"While the demographics and interest for home buying remain solid, higher costs and material access issues have resulted in lower levels of home building and even put a hold on some new home sales," said Robert Dietz, chief economist at NAHB.
Builders have since the reopening of the economy grappled with supply-chain disruptions that have caused the cost of lumber and other materials to soar amid a period of strong demand for building projects.
Two of the three major indexes within the report posted declines.
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The National Association of Homebuilder’s/Wells Fargo Housing Market Index declined by 5 points in August to 75, the lowest reading since July 2020. Any reading above 80 signals strong demand. The index can range between 0 and 100 with any print over 50 indicating positive sentiment.
"While the demographics and interest for home buying remain solid, higher costs and material access issues have resulted in lower levels of home building and even put a hold on some new home sales," said Robert Dietz, chief economist at NAHB.
Builders have since the reopening of the economy grappled with supply-chain disruptions that have caused the cost of lumber and other materials to soar amid a period of strong demand for building projects.
Two of the three major indexes within the report posted declines.
Homebuilder confidence sinks to 13-month low
Homebuilder confidence fell to a 13-month low in August as higher material costs and home prices hurt sentiment.