After 12 straight monthly declines, builder confidence in the market for newly built single-family homes rose four points in January to 35, signaling a possible rebound for home building in 2023, the National Association of Home Builders' Eye on Housing reports. In the coming quarters, single-family starts are expected to rise from cycle lows as slower mortgage rate hikes improve housing affordability and lead to a resurgence of buyer activity.
According to the most recent NAHB/Wells Fargo Housing Market Index (HMI), measures of current sales conditions, sales expectations, and buyer traffic all increased in January, though builders are still grappling with a housing deficit of 1.5 million units.
It is possible that the low point for builder sentiment in this cycle was registered in December, even as many builders continue to use a variety of incentives, including price reductions, to bolster sales. The rise in builder sentiment also means that cycle lows for permits and starts are likely near, and a rebound for home building could be underway later in 2023.
Advertisement
Related Stories
Forty Under 40
2024 Forty Under 40 Nomination Form
Help us recognize the rising stars, innovators, and game-changers in the housing industry!
Market Data + Trends
Housing Market Index Shows Builder Sentiment Continues to Rise
In March, builder confidence in the market for newly built single-family homes hit its highest level since July 2023
NAHB
Overcoming Challenges, Celebrating Victories
NAHB Chairman's Message: 2023 was a challenging year for home building, but among the challenges, there were many victories as well
