Not surprising, reports of the largest decrease in the Homebuilder Confidence Index hit us this morning as hard as it’s hitting the economy. Key takeaways from sources:
- Builder confidence in the market for single-family homes plunged 42 points to a reading of 30 in April, the lowest point since June 2012, according to the latest National Association of Homebuilders/Wells Fargo Housing Market Index.
- Anything above 50 is considered positive. The last negative reading was in June 2014.
According to Robert Dietz, NAHB’s chief economist, the need for residential housing remains acute. This echo’s our thoughts prior to COVID-19 and coming into 2020, this was strong given there was a clear shortage of housing earlier in the year. But we are still at historically low levels and the number of homes on the market was also historically low(er). He went on to say “As social distancing and other mitigation efforts show signs of easing this health crisis, we expect that housing will play its traditional role of helping to lead the economy out of a recession later in 2020”. That’s a light at the end of the tunnel we will keep our eye on.