Homebuilder Confidence Collapses In July
The index of builder sentiment finally gave way and plunged to 55 in July from 67 last month, seventh straight monthly decline and lowest since May 2020.
Source: Bloomberg
The 12 point drop is the biggest in the 30-year history of the survey outside of the COVID-Lockdown plunge in 2020.
"Production bottlenecks, rising home building costs and high inflation are causing many builders to halt construction because the cost of land, construction and financing exceeds the market value of the home," said NAHB Chairman Jerry Konter
All three components plunged
Measure of present single family sales fell to 64 vs 76
Future single family sales gauge fell to 50 vs 61
Prospective buyers traffic measure fell to 37 vs 48
Source: Bloomberg
Finally, we note that homebuilder sentiment still has a long way to go to catch down to homebuyer sentiment...
Source: Bloomberg
Is this what you wanted Mr.Powell?
