Homebuilder Confidence Surges Past Expectations
Americans are opting to build single-family homes at a greater rate in spite of the longer wait times created by supply-side challenges, according to CNBC .
The numbers: “Confidence rose 3 points to 83 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Anything above 50 is considered positive. Analyst expectations had been for it to remain unchanged at 80. Sentiment stood at 90 in November 2020.”
The context: Amid falling home resales and thickening buyer traffic in the homebuilding market, the increase in homebuilder confidence puts the current number at its highest point since last May.
The pitfall: Faced with shortages in labor, supplies and land availability, some builders are having trouble meeting the demand. Some are also intentionally restricting the pace of home sales to ensure on-time delivery.