Builder sentiment fell for the fourth straight month in August to mark the lowest level in 13 months.
- The NAHB/Wells Fargo Housing Market Index fell to 75 in August. This is the lowest since July 2020’s 72.
- Regionally, the three-month moving average for the Northeast fell one point to 74, the Midwest down two points to 68, the South down three points to 82, and the West down two points to 85.
- The HMI index that tracks prevailing sales conditions declined five points to 81. The component gauging traffic of prospective buyers also fell five points to 61.
- The index measuring sales expectations for the next six months was unchanged at 81.
- NAHB Chairman Chuck Fowke attributed the decline to “sticker shock” due to higher construction costs.
- Chief Economist Robert Dietz said the higher costs and issues on access to materials have put on hold some new home sales.
- Dietz believes production bottlenecks will ease in the coming months and bring the market back to more “normal” conditions.