U.S. Homebuilder Sentiment Exceeds Forecast
Confidence among American homebuilders stabilized in September as demand held up and lumber prices fell.
(Bloomberg) -- Confidence among American homebuilders stabilized in September as demand held up and lumber prices fell, a National Association of Home Builders/Wells Fargo report showed Tuesday.
Highlights of Homebuilder Sentiment (September) |
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Key Takeaways
While the unchanged main gauge matched the lowest since September 2017, it bucked analyst estimates for a decline and two of the components advanced. That signals the housing market, at least for newly constructed homes, may be stabilizing after signs of a slowdown in recent months.
While rising prices and mortgage rates have squeezed buyers, a strong labor market and tax cuts have supported demand. Data on housing starts and existing-home sales due in the next two days are both projected to show improvement in August.
Builders continue to report strong demand as millennials and other newcomers enter the market, the report said. Affordability, however, remains a concern as builders work to manage construction costs and keep prices competitive. Lumber prices have tumbled since reaching a record in May.
Official’s View
“A growing economy and rising incomes combined with increasing household formations should boost demand for new single-family homes,” NAHB Chief Economist Robert Dietz said in a statement. “However, housing affordability is becoming a challenge, as builders face overly burdensome regulations and rising material costs exacerbated by an escalating trade skirmish.”
Other Details- Confidence gauge in Northeast rebounded to 61 from 46, matching highest since 2005
- Indexes of confidence fell in the South and Midwest while the West was unchanged
To contact the reporter on this story: Sarah Foster in Washington at sfoster94@bloomberg.net
To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Jeff Kearns
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