NAHB Chairman: Builder Confidence is on the Rise in April 2021
Builder Confidence is on the rise in April 2021. The supply chain for residential construction is tight, according to the NAHB Chairman, especially in terms of the cost and availability of lumber and appliances.
Builder confidence increased in April, despite growing lumber prices and supply chain issues.
In April, the Housing Market Index (HMI) from the National Association of Home Builders (NAHB) and Wells Fargo rose one point to 83.
Chairman of the NAHB, Chuck Fowke stated, “Despite strong buyer traffic, builders continue to face challenges to add much-needed housing supply to the market. The supply chain for residential construction is tight, particularly regarding the cost and availability of lumber, appliances, and other building materials. Though builders are seeking to keep home prices affordable in a market in need of more inventory, policymakers must find ways to increase the supply of building materials as the economy runs hot in 2021.”
“While mortgage interest rates have trended higher since February and home prices continue to outstrip inflation, housing demand appears to be unwavering for now as buyer traffic reached its highest level since November,” Robert Dietz, the NAHB’s Chief Economist said.
The HMI index that measures current sales conditions rose one point to 88, while the gauge that measures prospective buyer traffic increased three points to 75.
Sales projections for the next six months dropped two points to 81.
The Northeast gained six points to 86, while the South gained one point to 83, according to three-month moving averages for regional HMI ratings.
The West remained at 90 points, while the Midwest fell two points to 78 points.
“NAHB’s forecast is for ongoing growth in single-family construction in 2021, albeit at a slower growth rate than realized in 2020.” Dietz continued.
Read the full NAHB/Wells Fargo Housing Market Index (HMI) here.
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