Builder sentiment decreased four points in December 2020 to 86 after reaching a record high of 90 in November 2020, according to tradingeconomics.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 four points to 92; sales expectations in the next six months decreased four points to 85; and buyer traffic dropped four points to 73.
“Housing demand is strong entering 2021; however, the coming year will see housing affordability challenges as inventory remains low and construction costs are rising,” said NAHB Chairman Chuck Fowke.
