For the fifth consecutive month, homebuilder sentiment declined and now stands at the lowest level since June 2020.
Home Builder Sentiment Plunges – Again
According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI,) the gauge of homebuilder sentiment in the US, homebuilders’ sentiment tumbled 8 points in May to 69, the steepest drop since April 2020.
All measurements of current home sales, expected sales and potential homebuyer traffic significantly deteriorated from April to May.
Please choose one answer:
1) I am ready to join EXP Realty.
2) I am interested in EXP Realty and need more info.
3) I am not interested in EXP Realty.
* If you answered “#1” congratulations. You are about to join the fastest-growing real estate company in the world. Tim and Julie Harris are inviting you to join them at EXP Realty. Text Tim directly for the next steps: 512-758-0206. (text only please)
* If you answered “#2” please watch the videos and check out the other intel on this site. http://whylibertas.com/harris .
* If you answered ‘#3’ no worries. You will want to check out whylibertas.com/harris so you can at least know what EXP Realty is and why so many agents are moving to EXP.
Robert Dietz, chief economist with the NAHB, summarized the home building industry’s current state of affairs (mortgage rates climbing to their highest level since 2009, rising home prices, building materials increasing +19% y/y, and sharply higher labor costs) by saying, “The housing market is facing growing challenges…based on current affordability conditions, less than 50% of new and existing home sales are affordable for a typical family. Entry-level and first-time buyers are especially bearing the brunt of this rapid rise in mortgage rates.”
Housing Industry Getting Attention of White House
NAHB chair Jerry Konter said that housing’s affordability crisis has attracted attention from the White House.
Konter said, “Housing leads the business cycle and housing is slowing. The White House is finally getting the message and yesterday released an action plan to address rising housing costs that emphasizes a very important element long-advocated by NAHB – the need to build more homes to ease the nation’s housing affordability crisis.”
Whether or not this affordability plan put forth by the White House becomes a reality will, of course, be determined by support from and votes by Congressional leaders who are deeply fractured by political divides. Nothing is a sure thing.
Specifics of Homebuilder Sentiment by NAHB Measurements
All categories within the NAHB/Well Fargo homebuilders sentiment gauge dropped significantly from April to May 2022 for the fifth consecutive month.
Take a look:
- Current sales – down 8 points to 78
- Prospective buyer traffic – down 9 points to 52
- Sales expectations for next six months – down 10 points to 63
- The Northeast region of the country was the only region in which homebuilder sentiment did NOT decline. The Midwest HMI fell by 7 points to 62, the South HMI dipped two points to 80 and the West HMI dropped by 6 points to 83. (Any index over 50 points indicates that builders see industry conditions to be more favorable than not.)
URGENT: Are You Worried About Having A Slower Start To The Year? Don’t Hit The Panic Button, Learn How To Have Massive Success In A Shifting Market. When You Attend This Exclusive Training You Will Learn 17 Surprising Secrets Of The Top 100 $ Millionaire Agents. Claim Your FREE Spot Now. After You Have Attended This Event You Will Experience A Huge Feeling Of Relief Knowing You Will FINALLY Laugh At Your Money Worries – You Will Have Your Own Personalized 2022 Step-By-Step Business And Lead Generation Plan. Learn Now How To Generate 100’s of Motivated Leads for FREE, Without Coming Off As A Pushy Salesperson and Losing Your Soul. You Will Soon Know How To Become One of the 1000s of Agents Making HUGE Money In This Changing Market. Claim your FREE spot now. YES, I Want To Attend The FREE Webinar! <——Click To Register
P.S. Free Webinar, Limited Space. Less Than 300 Spots Still Available.
Thanks to National Association of Homebuilders, Wells Fargo and Bloomberg and Inman.