Builder confidence dropped one point in August to a reading of 67 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index.
Home affordability concerns spurred by rising construction costs, along with shortages of skilled labor and scarcity of buildable lots continue to concern builders, according to NAHB Chairman Randy Noel.
“The good news is that builders continue to report strong demand for new housing, fueled by steady job and income growth along with rising household formations,” Noel said in a statement.
The solid economy and job market should spark demand for single-family homes in the upcoming months, NAHB Chief Economist Robert Dietz stated.
“Meanwhile, builders continue to monitor how tariffs and the growing threat of a trade war are affecting key building material prices, including lumber,” Dietz said.
The HMI Index found that confidence in current sales conditions dropped one point to a level of 73, and expectations of buyer traffic fell two points to a level of 49.
The HMI Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or poor; levels above 50 are considered positive conditions.
Related:
Rising Home Prices Push Housing Affordability to 10-Year Low
NAHB Denounce Trump’s New Steel, Aluminum Tariffs
Trump Administration Proposes 10 Percent Tariffs on Chinese Wood Flooring
