NAHB/Wells Fargo Housing Market Index Declines

The U.S. builder confidence in the market of newly built single-family homes fell by two points to 82 in March, as shown by the latest NAHB/Wells Fargo Housing Market Index (HMI) on Tuesday.

“Despite high buyer traffic and strong demand, builder sentiment fell in March as rising lumber and other material prices pushed builder confidence lower,” according to the National Association of Home Builders (NAHB)

“Supply shortages and high demand have caused lumber prices to jump more than 200% since last April. Policymakers must address building material supply chain issues to help the economy sustain solid growth in 2021.”

“Builder confidence peaked at a level of 90 last November and has trended lower as supply-side and demand-side factors have trimmed housing affordability.”

The current sales conditions index fell three points to 87, while the component measuring sales expectations in the next six months increased three points to 83.

The charting traffic of prospective buyers’ index steadied at 72.