U.S. Home-Builder Confidence Continued to Fall at End of 2018
December 17 2018 - 10:29AM
Dow Jones News
By Sharon Nunn
WASHINGTON--A gauge of U.S. home-builder sentiment fell sharply
in December because of housing affordability concerns.
The National Association of Home Builders on Monday said its
index of builder confidence in the market for new single-family
homes fell to 56 in December from the prior month.
Sentiment has pulled back this year as supply constraints, such
as lack of buildable lots and increasing construction material
costs, continue to weigh on the housing market. At the same time,
rising borrowing costs and lackluster housing supply are driving up
the cost of purchasing a home, keeping many potential buyers off
the market.
Economists surveyed by The Wall Street Journal had expected a
higher December reading of 61.
"The fact that builder confidence dropped significantly in areas
of the country with high home prices shows how the growing housing
affordability crisis is hurting the market," said Robert Dietz, the
trade group's chief economist. "This housing slowdown is an early
indicator of economic softening, and it is important that builders
manage supply-side costs to keep home prices competitive for buyers
at different price points."
Still, NAHB Chairman Randy Noel said "recent declines in
mortgage interest rates should help move the market forward in
early 2019."
November figures for home construction and existing-home sales
are due later this week.
Write to Sharon Nunn at Sharon.Nunn@WSJ.com
(END) Dow Jones Newswires
December 17, 2018 10:14 ET (15:14 GMT)
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