The National Association of Home Builders (NAHB) reported the
housing market index (HMI) was at 30, down from 72 in March. Any
number below 50 indicates that more builders view sales conditions
as poor than good.
Reflecting the growing effects of the COVID-19
pandemic, builder confidence in the market for newly-built
single-family homes plunged 42 points in April to 30, according
to the latest NAHB/Wells Fargo Housing Market Index (HMI) released
today. The decline in April was the largest single monthly change
in the history of the index and marks the lowest builder confidence
reading since June 2012. It is also the first time that builder
confidence has been in negative territory (below 50) since June
“This unprecedented drop in builder confidence is due exclusively
to the coronavirus outbreak across the nation, as unemployment has
skyrocketed and gaps in the supply chain have hampered construction
activities,” said NAHB Chairman Dean Mon.
The HMI index gauging current sales conditions dropped 43 points to
36, the component measuring sales expectations in the next six
months fell 39 points to 36 and the gauge charting traffic of
prospective buyers also decreased 43 points to 13.
Looking at the monthly averages regional HMI scores, the Northeast
fell 45 points in April to 19, the Midwest dropped 42 points to 25,
the South fell 42 points to 34 and the West dropped 47 points to
This graph show the NAHB index since Jan 1985.
This was well below the consensus forecast. This survey took place
between April 1 and April 13 and shows the impact of COVID-19.
Note: The graph shows the 2020 recession starting in March 2020.
Source: FS – All – Real Estate News 2
NAHB: Builder Confidence "Plunged" to 30