Homebuilder confidence fell to a 13-month low in August as higher material costs and home prices hurt sentiment.
The National Association of Homebuilder’s/Wells Fargo Housing Market Index declined by 5 points in August to 75, the lowest reading since July 2020. Any reading above 80 signals strong demand. The index can range between 0 and 100 with any print over 50 indicating positive sentiment.
“While the demographics and interest for home buying remain solid, higher costs and material access issues have resulted in lower levels of home building and even put a hold on some new home sales,” said Robert Dietz, chief economist at NAHB.