According to the most recent NAHB/Wells Fargo Housing Market Index (HMI), builder confidence continued its strength in the market for newly built homes, registering at 86 points in December. Although this ended a streak of three consecutive months of record-high (a drop in 4 points from the previous recording), December is still the second-highest reading in the history of the series after month’s record-setting 90.
“Housing demand is strong entering 2021, however the coming year will see housing affordability challenges as inventory remains low and construction costs are rising,” said NAHB Chief Economist Robert Dietz. “The issues that have limited housing supply in recent years, including land and material availability and a persistent skilled labor shortage, will continue to place upward pressure on construction costs.”
In regards to three-month moving averages for regional scores, the Midwest spiked one point to 81, the Northeast dropped to 82, the South hiked up one point to 87 and the West saw a two-point increase to 96.