Builder sentiment increased one point to 84 in December—the highest level since February—as buyer demand remained strong, according to marketwatch.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 rose one point to 90; buyer traffic increased one point to 70; and sales expectations in the next six months were unchanged at 84.
Although demand remains strong, finding workers and handling material delays remains a challenge.
NAHB chief economist Robert Dietz said the most pressing issue for the housing sector still is lack of inventory.
“While 2021 single-family starts are expected to end the year 24% higher than the pre-Covid 2019 level, we expect higher interest rates in 2022 will put a damper on housing affordability,” he said.
