Homebuilder confidence fell more than expected in March according to the latest data from the National Home Builders Association…(NAHB)
- M-O-M: The NAHB/Wells Fargo Housing Market Index fell two points to 79. Expectations had been for a drop to 80.
- Y-O-Y: Homebuilder confidence is down three points when compared to March 2021.
NOTE: This was the third straight month of declines and was the lowest level since September.
This month’s decline was led by a huge drop in confidence in the future with the index falling 10 points to 70. This is the lowest level since June 2020…
- The present index saw a slight decline to 86 from 89 in February, however, was the lowest level since June.
- The traffic of prospective buyers actually increased two points to 67.
Regionally, the West continues to lead the way with an index of 91, unchanged from the previous month…
- The South fell four points to 80 while the Midwest was actually up for the month at 73(+2). The Northeast saw a giant drop of 16 points to 60, this is the lowest level for any region since June 2020.
With rates rising along with costs it is understandable that homebuilders are feeling less confident in 2022. However, it is important to remember that any level over 50 means more builders view conditions as good than poor. Considering that construction costs are at all-time highs and rates are reaching levels we haven’t seen since 2019. The fact that the index isn’t just positive but almost in the 80s is really a testament to how much demand from buyers still exists in this current environment.
