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Home Economy

Home Builder Confidence Falls in July

July 19, 2021
Reading Time: 1 min read

The National Association of Home Builders/Wells Fargo Housing Market Index fell to 80 in July. NAHB Chairman Chuck Fowke noted that while high costs for materials and supply chain challenges have brought down builder confidence, heightened demand from home buyers continues to offset the industry’s struggles.

“Builders are contending with shortages of building materials, buildable lots and skilled labor as well as a challenging regulatory environment. This is putting upward pressure on home prices and sidelining many prospective home buyers even as demand remains strong in a low-inventory environment,” said NAHB Chief Economist Robert Dietz.

The HMI component measuring buyer traffic dropped six points to 65. The component measuring current sales conditions fell one point to 86, and the component measuring sales expectations in the next sixth months increased two points to 81.

Looking at the three-month moving averages for regional HMI scores, the Midwest fell one point to 71, the Northeast fell four points to 75, the South remained unchanged at 85, and the West declined two points to 87.

Read the NAHB release.

 

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