Homebuilder confidence was down in June and has reached a 10-month low, according to the latest data from the NAHB/Wells Fargo Housing Market Index (NAHB).
- Builder confidence in the market for newly built single-family homes fell two points to 81 in June.
- Confidence is down 9 points from the all-time high of 90 we saw in November 2020.
NOTE: A reading above 80 is still a signal of strong demand in a housing market lacking inventory.
All three of the major indices posted two point declines in June…
- Current sales conditions saw a decline to 86
- Sales expectations in the next six months posted fell to 79
- Traffic of prospective buyers dropped to 71.
NAHB Chairman Chuck Fowke said in a statement, “These higher costs have moved some new homes beyond the budget of prospective buyers, which has slowed the strong pace of home building. Policymakers need to focus on supply-chain issues in order to allow the economic recovery to continue.”
Haver to wonder if we are going to see a big uptick in July as lumber prices continue to fall? Futures for July delivery ended Monday down 42% from the record prices we saw in early May (WSJ)