US homebuilder confidence falls to 11-month low in July

Published Mon, Jul 19, 2021 · 11:47 PM

[WASHINGTON] US homebuilder confidence in the market for single family homes fell in July to its lowest level since August 2020.

The NAHB/Wells Fargo Housing Market index declined to a reading of 80 this month from 81 in June. Economists polled by Reuters had expected the index to advance marginally to a reading of at 82. A reading above 50 means more builders view market conditions as favourable than poor. The index hit an all-time high of 90 in November 2020.

"Builders are contending with shortages of building materials, buildable lots and skilled labor as well as a challenging regulatory environment," said NAHB chief economist Robert Dietz. "This is putting upward pressure on home prices and sidelining many prospective home buyers even as demand remains strong in a low-inventory environment." Surging home prices and limited supply has put a lid on home sales recently, and fewer US consumers believe that now is a good time to buy a home.

The NAHB survey's measure of single-family home sales expectations in the next six months rose two points to a reading of 81 in July, while a gauge of current sales conditions decreased one point to 86.

The prospective buyers index fell six points to 65.

REUTERS

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