Builder Confidence Drops As Covid Cases Rise

Builder confidence slid in January as the nation faced climbing Covid-19 caseloads and homebuilders confronted surging lumber prices, the National Association of Home Builders/Wells Fargo Housing Market Index released Wednesday showed. Builder confidence in the market for newly built single-family homes slipped three points to 83 this month. “Despite robust housing demand and low mortgage rates, buyers are facing a dearth of new homes on the market, which is exacerbating affordability problems,” NAHB Chairman Chuck Fowke said. “Builders are grappling with supply-side constraints related to lumber and other material costs, a lack of affordable lots and labor shortages that delay delivery times and put upward pressure on home prices. They are also concerned about a changing regulatory environment.” The HMI…

Builder Confidence Surges In June

Two months after things looked bleak, builder confidence surged in June as the nation takes additional steps to reopen after the economic shutdowns in reaction to the COVID-19 pandemic. The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released Tuesday found builder confidence in the market for newly built single-family homes increased 21 points to 58. Anything about 50 reflects a positive view of the market. “Housing clearly shows signs of momentum as challenges and opportunities exist in the single-family market,” NAHB Chief Economist Robert Dietz said. “Builders report increasing demand for families seeking single-family homes in inner and outer suburbs that feature lower density neighborhoods. At the same time, elevated unemployment and the risk of new, local…

Builder Confidence In Multifamily Market Drops

Builder confidence in the market for new multifamily housing plummeted in the first quarter of 2020, according to a survey released Thursday by the National Association of Home Builders. The Mutlifamily Production Index – which measures builder and developer attitudes about the apartment and condo market – fell to 27, down 22 points from the previous quarter. The index is on a scale of 0 to 100, with a number below 50 indicating that more respondents believe conditions are getting worse than those reporting conditions are improving. The index is at its lowest level since the fourth quarter of 2009. “Like other sectors of the housing market, the multifamily market has been greatly affected by the effects of the pandemic,”…