RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Builder Confidence Plummets Toward Negative Territory

Home Agents
By Jesse Williams
July 18, 2022
Reading Time: 1 min read
Builder Confidence Plummets Toward Negative Territory

After months and months of unbridled optimism, homebuilders are increasingly worried about the housing market as the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) measuring builder confidence remains in free-fall, approaching an overall negative attitude toward the future.

A 12-point drop in July was the largest single decline in the index since the onset of the pandemic, moving close to the equivalent of bear market territory at 55. Anything below 50 indicates that more builders view conditions as poor than good.

Key findings:

All three HMI components posted significant declines in July. The metric measuring current sales conditions dropped 12 points to 64, the measurement tracking sales expectations for the next six months declined 11 points to 50 and the index traffic of prospective buyers fell 11 points to a dismal 37.

Looking at the three-month moving averages for regional HMI scores, the Northeast fell six points to 65, the Midwest dropped four points to 52, the South fell eight points to 70 and the West posted a 12-point decline to 62.

The takeaway:

“Affordability is the greatest challenge facing the housing market,” said NAHB Chief Economist Robert Dietz in a statement. “Significant segments of the home-buying population are priced out of the market. Policymakers must address supply-side issues to help builders produce more affordable housing.”

“Production bottlenecks, rising home building costs and high inflation are causing many builders to halt construction because the cost of land, construction and financing exceeds the market value of the home,” said NAHB Chairman Jerry Konter in a statement. “In another sign of a softening market, 13% of builders in the HMI survey reported reducing home prices in the past month to bolster sales and/or limit cancellations.”

Tags: builder confidence surveyHousing AffordabilityHousing InventoryNational Association of Home BuildersNew Home ConstructionNew Home Sales
ShareTweetShare

Jesse Williams

Jesse Williams is RISMedia’s senior editor. Email him your real estate news to jwilliams@rismedia.com.

Related Posts

BCI Up as Brokers Roll With the Punches
Agents

BCI Up as Brokers Roll With the Punches

August 10, 2022
Democratic Bill Passes Senate, With Changes
Agents

Democratic Bill Passes Senate, With Changes

August 10, 2022
Refinances Fuel Slight Increase in Mortgage Applications This Week
Agents

Refinances Fuel Slight Increase in Mortgage Applications This Week

August 10, 2022
National Association of REALTORS® Announces 2023 Leadership Academy Class
Agents

National Association of REALTORS® Announces 2023 Leadership Academy Class

August 10, 2022
Inflation (Finally) Dips, Housing Still a Concern
Agents

Inflation (Finally) Dips, Housing Still a Concern

August 10, 2022
Housing Inventory Increases at Record Pace in July as Demand Weakens
Agents

Housing Inventory Increases at Record Pace in July as Demand Weakens

August 10, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

There’s Gold in Them There Leads. HomeKeepr Can Help.

Does your brokerage have leads no one is working? Let’s put those leads to work! Our Moover Intelligence feature identifies... Learn more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • BCI Up as Brokers Roll With the Punches
  • Democratic Bill Passes Senate, With Changes
  • Refinances Fuel Slight Increase in Mortgage Applications This Week

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

RISMEDIA PREMIER CONTENT

INSIGHTS THAT ELEVATE YOUR VALUE

logo-rismedia-white
x
X