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Wednesday, April 17, 2024
HomeNewsEconomyHomebuilder Sentiment Falls Slightly in January: NAHB/Wells Fargo Housing Market Index

Homebuilder Sentiment Falls Slightly in January: NAHB/Wells Fargo Housing Market Index

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Homebuilders and construction in the housing market. (PHOTO: REUTERS)

The National Association of Home Builder said its gauge of homebuilder sentiment was unchanged at 60 in January from a downwardly revised level the month prior. The NAHB/Wells Fargo Housing Market Index reading came in below the median forecast for 61.

“After eight months hovering in the low 60s, builder sentiment is reflecting that many markets continue to show a gradual improvement, which should bode well for future home sales in the year ahead,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo.

The reading marks the sixth consecutive month that the NAHB/Wells Fargo Housing Market Index came in above 50, the threshold for whether builders see the environment as generally favorable or unfavorable.

The subindex of single-family home sales sentiment fell to 61 from 62, while an index of single-family home sales sentiment for the next six months fell to 65 from 66.

“January’s HMI reading is right in line with our forecast of modest growth for housing,” said NAHB Chief Economist David Crowe. “The economic outlook remains promising, as consumers regain confidence and home values increase, which will help the housing market move forward.”

Still, regarding the three-month moving averages for regional HMI scores, all four regions posted slight declines. The Northeast, Midwest and West each reflected a one-point decline to 49, 57 and 75, respectively, while the South fell two points to 61. The latter is where the vast majority of single-family home construction occurs.

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PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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