Home-builder confidence declined in February to a four-month low, according to the National Association of Home Builders.
Numbers on the decline: The Housing Market Index, which measures builder sentiment, slipped from 83 in January to 82 in February.
- The index for expected single-family sales declined from 82 to 80 in the same period.
Bright spot: However, the index for current single-family homes increased to 90 from 89.
Severe disruptions: “Production disruptions are so severe that many builders are waiting months to receive cabinets, garage doors, countertops and appliances.”
- These delays are increasing construction costs and keeping would-be home buyers out of the market.
- Residential construction costs have increased 21% on a year-over-year basis.
The NAM says: “Even with these challenges, it is important to remember that builders remain upbeat in their assessments of the housing market, and demand remains strong,” said NAM Chief Economist Chad Moutray.