91视频builder Sentiment Falls on Storm-Related Supply Concern
Sentiment among America鈥檚 homebuilders fell more than forecast in September as companies grew concerned about the cost of construction materials and labor shortages in the wake of Hurricanes Harvey and Irma, according to data Sept. 18 from the National Association of 91视频 Builders/Wells Fargo.
Highlights of September 91视频builder Sentiment
鈥 Housing Market Index fell to 64 (estimated 67) from a revised 67 in August.
鈥 Measure of six-month sales outlook dropped 4 points, the most since November 2015, to 73.
鈥 Current sales index declined to 70 from 74, the biggest retreat in nearly three years.
Key Takeaways
The pullback in sentiment reflects builders鈥 heightened concerns about higher prices for materials following Harvey鈥檚 widespread damage to properties in southeast Texas and Irma鈥檚 landfall in Florida. In addition to rising costs of construction supplies, the industry has also been contending with a shortage of workers and ready-to-build lots.
Nonetheless, a solid job market and still-low mortgage rates indicate the residential real-estate market will continue to improve, the builders group said. Housing is also likely to get a boost later this year and in early 2018 as rebuilding efforts begin in areas affected by the Atlantic hurricanes.
Officials鈥 Views
鈥淭he recent hurricanes have intensified our members鈥 concerns about the availability of labor and the cost of building materials,鈥 NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas, said in a statement. 鈥淥nce the rebuilding process is underway, I expect builder confidence will return to the high levels we saw this spring.鈥
鈥淒espite this month鈥檚 drop, builder confidence is still on very firm ground,鈥 Robert Dietz, chief economist at NAHB, said in the statement. 鈥淲ith ongoing job creation, economic growth and rising consumer confidence, we should see the housing market continue to recover at a gradual, steady pace throughout the rest of the year.鈥
Other Details
鈥 Readings greater than 50 indicate more respondents reported good market conditions.
鈥 Gauge of prospective buyer traffic eased to 47 from 48, the fifth decline in the past six months.
鈥 Index of confidence in the South declined to 65 from 69.
鈥 Measure of sentiment among builders in the Midwest dropped to 59, the lowest level since November, from 65; confidence was higher in the West and Northeast.
