U.S. Home-Builder Sentiment Decreased in July as Supply Strains Persist -- NAHB

Home-builder confidence in the U.S. declined in July for the second consecutive month amid continued supply challenges relating to building materials, regulation and labor, according to a measure released Monday by the National Association of Home Builders. Here are the report's main takeaways:

--The association's housing market index, which gauges the single-family housing market, decreased to 80 in July from 81 in June. A number above 50 indicates that more builders view conditions as good than poor.

--Economists polled by The Wall Street Journal expected the indicator to be unchanged from the previous month at 81.

--The index is still a sign of strong demand, but has eased somewhat after reaching an all-time high of 90 in November 2020.

--"Builders are contending with shortages of building materials, buildable lots and skilled labor as well as a challenging regulatory environment," NAHB Chief Economist Robert Dietz said. These factors are putting upward pressure on home prices and sidelining many prospective home buyers even as demand remains strong in a low-inventory environment, he said.

--The three major HMI indexes posted mixed results in July compared with the previous month. The index gauging current sales conditions decreased fell one point to 86, the component measuring sales expectations in the next six months increased two points to 81, and the measure charting traffic of prospective buyers declined six points to 65.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com -0-

  (END) Dow Jones Newswires
  07-19-21 1014ET
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