Builder confidence in the market for newly built single-family homes ticked higher in April, as red-hot buyer demand helped to alleviate some concerns about the cost of materials, with the National Association of Homebuilders/Wells Fargo Housing Market Index rising one point to 83.
“The supply chain for residential construction is tight, particularly regarding the cost and availability of lumber, appliances, and other building materials,” NAHB Chairman Chuck Fowke said in a release. “Though builders are seeking to keep home prices affordable in a market in need of more inventory, policymakers must find ways to increase the supply of building materials as the economy runs hot in 2021.”
Buyer demand has not wavered, despite rising mortgage rates and housing prices, NAHB chief economist Robert Dietz said, noting that buyer traffic recently hit its highest level since November.
The NAHB expects continued growth in single-family construction through the rest of 2021, although at a slower pace than that of 2020.
By region, the index jumped six points to 86 in the Northeast and one point to 83 in the South, while it fell two points to 78 in the Midwest and remained at 90 in the West.