The
National Association of Homebuilders (NAHB) announced on Wednesday its housing
market index (HMI) increased to 84 in December from 83 in October. This was the highest reading since February.
Economists had forecast the HMI to remain at 83.
A
reading over 50 indicates more builders view conditions as good than poor.
Two
of three HMI components showed advances in early December. The
indicator gauging current sales conditions and the component measuring traffic
of prospective buyers rose 1 point each, reaching 90 and 70 respectively.
Meanwhile, the measure charting sales expectations in the next six remained
unchanged at 84.
NAHB
Chairman Chuck Fowke noted preserving challenges with dealing with material
delays, finding employees, and forecasting pricing, but added that demand
remains strong.
Meanwhile,
NAHB Chief Economist Robert Dietz said that lack of inventory continues to
be the most pressing issue for the U.S. housing sector. He also noted that higher
interest rates in 2022 are seen to put a damper on housing affordability.