Builder sentiment increased two points to 44 in March; anything below 50 is considered negative for the National Association of Home Builders’ monthly survey, according to CNBC. It reached a record high of 90 in November 2020.
The increase marks the highest reading since September 2022 for the NAHB/Wells Fargo Housing Market Index and the third consecutive monthly gain.
Of the homebuilder index’s three components, buyer traffic rose three points to 31; current sales conditions rose two points to 49; and sales expectations in the next six months decreased one point to 47.
“Even as builders continue to deal with stubbornly high construction costs and material supply chain disruptions, they continue to report strong pent-up demand as buyers are waiting for interest rates to drop and turning more to the new home market due to a shortage of existing inventory,” said NAHB Chairman Alicia Huey.
