Builder Sentiment Declines for the Eleventh Consecutive Month in November
On Wednesday (11-16-22), the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder sentiment in the market for newly built single-family homes dropped 5 points lower to a reading of 33 in November. This marks the eleventh consecutive monthly decline and the HMI’s lowest reading since June 2012, except for the onset of the pandemic in Spring 2020. Any reading below 50 indicates that more builders view conditions as poor rather than good.
All three HMI components posted declines in November. Current sales conditions fell six points to 39, sales expectations in the next six months declined four points to 31, and traffic of prospective buyers fell five points to 20.
Looking at the three-month moving averages for regional HMI scores, the Northeast fell six points to 41, the Midwest dropped two points to 38, the South fell seven points to 42, and the West posted a five-point decline to 29.
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