US homebuilder sentiment dipped slightly in January – NAHB

0

By Xavier Fontdegloria


U.S. homebuilder confidence fell in January after four months of gains as rising inflation concerns and supply chain disruptions outweighed strong consumer demand, the data shows. from the National Association of Home Builders released Tuesday. Here are the main findings of the report:

— The association’s housing market index, which gauges the single-family housing market, fell to 83 in January from 84 in December. A number above 50 indicates that more builders rate the conditions as good than bad.

— The index came in below the 84 consensus forecasts of economists polled by The Wall Street Journal.

— The overall cost of residential building materials has increased nearly 19% since December 2021, NAHB President Chuck Fowke said. “Higher material costs and lack of availability add weeks to typical construction times for a single-family home,” he said.

— The January data does not fully reflect the recent rise in mortgage interest rates, a factor that could weigh on demand, NAHB chief economist Robert Dietz said. “While lean inventory of existing homes and strong buyer demand support the need for new construction, the combination of continued increases in building materials, worsening skilled labor shortages and rising Mortgage rates indicate a decline in housing affordability in 2022,” he said.

–The index assessing current selling conditions remained stable at 90; the component measuring the traffic of potential buyers fell by two points, to 69; and the measure of expected sales over the next six months also fell two points, to 83.


Write to Xavier Fontdegloria at [email protected]

Share.

Comments are closed.