U.S. Home-Builder Confidence Holds Steady in May -- NAHB
By Xavier Fontdegloria
Home-builder confidence in the U.S. remained unchanged in May
supported by low inventories and strong demand, even as rising
prices and limited availability of most building materials added to
the cost of new homes, according to a measure released Monday from
the National Association of Home Builders. Here are the report's
--The association's housing market index, which gauges the
single-family housing market, stood at 83 in May, unchanged from
April. A number above 50 indicates that more builders view
conditions as good than poor.
--The reading matches economists' forecasts from The Wall Street
--The indicator remains at robust levels after reaching an
all-time high of 90 in November 2020.
--"Builder confidence in the market remains strong due to a lack
of resale inventory, low mortgage interest rates, and a growing
demographic of prospective home buyers," NAHB Chairman Chuck Fowke
said. However, first-time and first-generation home buyers are
particularly at risk for losing a purchase due to cost increases
associated with increasingly scarce material availability, he
--"Some builders are slowing sales to manage their own
supply-chains, which means growing affordability challenges for a
market in critical need of more inventory," NAHB Chief Economist
Robert Dietz said. Home buyers should expect rising prices
throughout 2021 as the cost of materials, land and labor continue
to rise, he said.
--The HMI indexes posted mixed figures in May compared with the
previous month. The index gauging current sales conditions held
steady at 88, the component measuring sales expectations in the
next six months rose one point to 81, and the measure charting
traffic of prospective buyers fell one point to 73.
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
May 17, 2021 10:14 ET (14:14 GMT)
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