Amid rising interest rates and materials costs, builder sentiment decreased two points in March to 82 following an increase in February to 84, according to cnbc.com. It reached a record high of 90 in November 2020.
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 2020.
Of the homebuilder index’s three components, current sales conditions fell three points to 87; sales expectations in the next six months increased three points to 83; and buyer traffic was unchanged at 72.
“Though builders continue to see strong buyer traffic, recent increases for material costs and delivery times, particularly for softwood lumber, have depressed builder sentiment this month,” said NAHB Chairman Chuck Fowke, a builder from Tampa, Fla. “Supply shortages and high demand have caused lumber prices to jump about 200% since last April.”
