It appears that homebuilders are finally starting to awaken to the reality of their customers' (homebuyers) collapse in confidence. NAHB Homebuilder Confidence crashed from 80 to 75 in August. That is a 13-month low (July 2020).
The field of dreams narrative just imploded.
Under the hood, the gauge of future single family sales was unchanged at 81, but the measure of present single family sales plunged to 81 from 86 last month, and more notably, prospective buyers traffic tumbled to 60 vs 65
NAR was quick to shrug off the sentiment slump:
“Our expectation is that production bottlenecks should ease over the coming months and the market should return to more normal conditions,” NAHB Chief Economist Robert Dietz said in a statement.
The Midwest and the South posted decreases in July, reaching the lowest sentiment levels since last summer. Meanwhile, the Northeast and the West slightly rose.