Published by FOX Business | November 16, 2021
Jerry Howard, NAHB CEO, says the disruptions are creating never before seen ‘unusual circumstances’ for new homes
National Association of Home Builders CEO Jerry Howard noted on Tuesday that supply chain disruptions are creating unprecedented issues, telling “Varney & Co.” they are causing “unusual circumstances” as it pertains to new homes.
Howard acknowledged that the issues are not impacting sentiment, but did stress that the “supply chain is still a headwind.”
He also told host Stuart Varney that “demand is so strong and the supply is so low” for new homes and argued if the supply chain can get “fixed” some “real good years” for the market are ahead.
Howard offered insight into the industry on the same day it was revealed homebuilder confidence rose in November as low inventories and strong buyer demand helped boost confidence despite the ongoing supply chain disruptions.
The National Association of Home Builders/Wells Fargo Housing Market Index this month rose three points to 83. Analysts surveyed by Refinitiv were expecting homebuilder sentiment to hold at 80.
The index can range between 0 and 100 with any print over 50 indicating positive sentiment. Any reading above 80 signals strong demand.
“The solid market for home building continued in November despite ongoing supply-side challenges,” said NAHB Chairman Chuck Fowke. “Lack of resale inventory combined with strong consumer demand continues to boost single-family home building.”
Howard warned on Tuesday that there is a delay built into contracts when building a home as a result of the supply chain disruptions.
