WASHINGTON, Aug. 17 (Xinhua) -- U.S. homebuilder confidence fell to a 13-month low in August amid higher construction costs and rising home prices, the National Association of Home Builders (NAHB) said on Tuesday.
The latest NAHB/Wells Fargo Housing Market Index, a measure of the builder confidence for newly-built single-family homes, fell five points to 75 in August, the lowest level since July 2020.
"Buyer traffic has fallen to its lowest reading since July 2020 as some prospective buyers are experiencing sticker shock due to higher construction costs," NAHB Chairman Chuck Fowke said in a statement, adding policymakers need to find long-term solutions to supply-chain issues.
"Higher costs and material access issues have resulted in lower levels of home building and even put a hold on some new home sales," echoed NAHB chief economist Robert Dietz.
"While these supply-side limitations are holding back the market, our expectation is that production bottlenecks should ease over the coming months and the market should return to more normal conditions," Dietz said.
The decline in homebuilder confidence came after the White House last month held a meeting with representatives from across the housing and homebuilding sector to discuss supply chain disruptions in the industry as well as shortages in the availability of homes for purchase and rent.
"Looking ahead, we will remain laser-focused on not only lowering lumber prices and increasing supply, but also keeping pressure on policymakers to improve supply chains for all building materials in order to protect housing affordability," the NAHB said after the meeting.
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