For the second consecutive month, home builders have grown less optimistic about market conditions, with the most deterioration in the Midwest.
As of December, the National Association of Home Builders/Wells Fargo Housing Market Index was reported to be at a level of 61.
That worked out to be a one point drop compared to one month prior, though the index has increased by four points versus a year previous.
The index reflects how builders perceive current single-family home sales, expectations for the next six months and the level of prospective buyer traffic.
An index above 50 indicates that
more builders view conditions as good than those who view them as poor.
“Overall, builders are optimistic about the housing market, although they are reporting concerns with the high price of lots and labor,”
NAHB Chairman Tom Woods said in the announcement.
The report, released Tuesday by the NAHB, was followed by news that building permits and new construction increased on a month-over-month basis in November, though there was a drop off in completed construction.
For just sales expectations, the HMI was
down two points from November to 67.
Current sales conditions also worsened, with that index retreating one point to 66.
The index representing buyer traffic dropped two points to 46.
The overall index for the Midwest was off two points to 58 utilizing a three-month moving average, while there was a one-point drop in the South’s HMI to 64.
But there was a one-point increase in the Northeast, leaving that index at 50, while builders in the West were even more optimistic, with the HMI for that region rising three points to 76.
