US Homebuilder Sentiment Rises to 5-Month High

The NAHB/Wells Fargo Housing Market index in the US increased for a second month to 42 in February of 2023, the highest since September and beating market forecasts of 37.

It is also the biggest monthly gain in nearly a decade excluding the rebound after 2020 COVID-19 lockdowns.

The gauge for current sales conditions rose to 46 from 40, sales expectations in the next six months went up to 48 from 37, and traffic of prospective buyers edged 6 points higher to 29.

“With the largest monthly increase for builder sentiment since June 2013, the HMI indicates that incremental gains for housing affordability have the ability to price-in buyers to the market.

The nation continues to face a sizeable housing shortage that can only be closed by building more affordable, attainable housing”, said NAHB Chairman Alicia Huey.