On Tuesday (10-18-22), 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 tumbled 8-points lower in October to a reading of 38—half the level it was just six months ago. This marks the tenth consecutive month of declines and the HMI’s lowest reading since August 2012, except for Spring 2020.
Any reading below 50 indicates that more builders view conditions as poor rather than good.
All three HMI components posted declines in October. Current sales conditions fell nine points to 45; sales expectations in the next six months declined 11 points to 35; and traffic of prospective buyers fell six points to 25.
Looking at the three-month moving averages for regional HMI scores, the Northeast fell three points to 48, the Midwest dropped three points to 41, the South fell seven points to 49, and the West posted a seven-point decline to 34.
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