Builder sentiment decreased one point to 83 in January as homebuilders face growing expenses, according to cnbc.com. It reached a record high of 90 in November 2020.
Any reading above 50 indicates a positive market; the National Association of Home Builders/Wells Fargo Housing Market Index had fallen to 30 in April 2020.
Of the homebuilder index’s three components, current sales conditions was unchanged at 90; sales expectations in the next six months fell two points to 83; and buyer traffic decreased two points to 69.
Although demand remains strong, supply chain challenges still are affecting homebuilders and causing delays.
“Higher material costs and lack of availability are adding weeks to typical single-family construction times,” said NAHB Chairman Chuck Fowke, a homebuilder from Tampa, Fla. “NAHB analysis indicates the aggregate cost of residential construction materials has increased almost 19% since December 2020.”