Builder Confidence Tapering Off

[Confidence of single-family home builders slid further this month from its summer peak, yet remained well within the positive range, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for December, released today. The overall HMI declined four points from a slightly revised November number to 57, while the component measuring builder expectations for future sales held firm at 65.

“Many builders sense some tapering off of single-family buyer demand, but remain reasonably confident in the ongoing strength of their markets,” said NAHB President Dave Wilson, a custom home builder from Ketchum, Idaho. “They obviously are reacting to higher interest rates and energy costs, along with some buyer resistance to high house prices.”]

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