Homebuilder sentiment rose in September, ending three-month decline

Low lumber prices and strong housing demand boosted builder confidence

National /
Sep.September 20, 2021 12:00 PM
Homebuilders are more confident in home sales than they’ve been in the last three months (Getty)
Homebuilders are more confident in home sales than they’ve been in the last three months (Getty)

Optimism among builders that new single-family homes will sell rose in September after declining for three months as lumber prices fell and buyers clamored for places to live. 

The Housing Market Index from the National Association of Home Builders and Wells Fargo inched up one point to a seasonally adjusted 76. A reading above 50 for the index, which gauges builder perceptions of current and future single-family home sales, is generally positive, indicating that more say conditions are good rather than poor.

Sentiment has cooled since the index hit a high of 90 in November of 2020. The latest reading suggests that while the single-family market is still strong, it’s now more stable, NAHB Chief Economist Robert Dietz said in a statement.

Still, the housing industry is grappling with supply chain issues and difficulty hiring workers.

“Delivery times remain extended and the chronic construction labor shortage is expected to persist as the overall labor market recovers,” NAHB Chairman Chuck Fowke said in a statement.

Housing affordability will probably be another challenge on the demand side after home prices and construction costs surged in the past year, the NAHB said.

The index’s three-month average fell two points in three regions. In the Northeast, it dropped to 72, to 80 in the South and to 83 in the West. It stayed at 68 in the Midwest.

Exurban markets have expanded the most, though inner suburbs are accelerating. Townhouse construction had the best quarter it has had in 14 years this spring, he added.






    Related Articles

    arrow_forward_ios
    California counterintuitive: Less frenzy, more home sales
    California counterintuitive: Less frenzy, more home sales
    California counterintuitive: Less frenzy, more home sales
    Home prices continue to increase (iStock)
    Southern California ekes out another record on home price
    Southern California ekes out another record on home price
    The Agency CEO Mauricio Umansky and agent Zar Zanganeh (Getty, Luxe Estates)
    The Agency places bet on Vegas
    The Agency places bet on Vegas
    Intracorp gets started on more apartments in Irvine Business Complex
    Intracorp gets started on more apartments in Irvine Business Complex
    Intracorp gets started on more apartments in Irvine Business Complex
    Prediction: California housing market will cool in 2022
    Prediction: California housing market will cool in 2022
    Prediction: California housing market will cool in 2022
    Miami nips at NY for title of most expensive housing market
    Miami catching up to NY for title of most expensive housing market
    Miami catching up to NY for title of most expensive housing market
    Southern California’s housing market undoubtedly cooling (Getty)
    SoCal home sale prices inch down…but they’re still high
    SoCal home sale prices inch down…but they’re still high
    Emile Haddad will remain on the board for FivePoint (Getty)
    CEO of FivePoint, among Cali’s largest homebuilders, stepping down
    CEO of FivePoint, among Cali’s largest homebuilders, stepping down
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...