Construction sentiment in the single-family home market slipped into negative territory in August in the US as builders and buyers grappled with higher costs.
The National Association of Home Builders/Wells Fargo Housing Market Index fell 6 points to 49 this month, its eighth straight monthly decline. Anything above 50 is considered positive ground. The index has not been in negative territory since a very brief dip at the start of the coronavirus pandemic. Prior to that, it had not been in negative territory since June 2014.
“The Federal Reserve’s tighter monetary policy and persistently elevated construction costs have depressed the housing market,” said NAHB Chief Economist Robert Dietz.
Despite higher land, labor and material costs, about 1 in 5 manufacturers in August reported cutting prices in the last month in an effort to increase sales or limit cancellations. The average decline reported was 5%, as reported by CNBC.
Source: Capital
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