Builder sentiment decreased three points in January to 83 following a decrease in December 2020 to 86; it reached a record high of 90 in November 2020, according to cnbc.com. Any reading above 50 indicates a positive market; the National Association of Home Builders/Wells Fargo Housing Market Index had fallen to 30 in April.
Of the homebuilder index’s three components, current sales conditions fell two points to 90; sales expectations in the next six months decreased two points to 83; and buyer traffic dropped five points to 68.
“Builders are grappling with supply-side constraints related to lumber and other material costs, a lack of affordable lots and labor shortages that delay delivery times and put upward pressure on home prices,” said NAHB Chairman Chuck Fowke.
