American homebuilder confidence climbed for the fourth straight month to tie the highest reading of the year in December, according to the National Association of Home Builders.
XHB is down 0.48%.
The builder sentiment for newly-built single-family homes stood at 84 in December, up from 83 in November but lower than the 86 in December 2020. This is the same reading seen in February and the highest for 2021.
Current sales conditions increased to 90, up from 89 in November but lower than the 92 a year ago. Future sales conditions were unchanged for the third straight month at 84, down from the 85 the same month last year.
The three-month moving averages HMI scores posted gains in the regions — the Northeast up four points to 74, the Midwest up two points to 74, and the South and West both up three points to 87.
NAHB Chairman Chuck Fowe attributed the growth to strong demand but flagged challenges such as labor shortages, price predictions, and material delays. He noted that policymakers need to address the supply chain constraints.
Fowe also warned that inventory remains the most pressing issue for the housing sector.