Sales of newly built, single-family homes in January rose 4.3 percent to a 923,000 seasonally adjusted annual rate, from an upwardly revised December reading, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
"The increase in lumber prices is forcing our company to delay construction starts, which will only exacerbate the lack of supply in our market," said NAHB first vice chairman Jerry Konter, a home builder and developer from Savannah, Georgia.
Higher home prices stemming from rising lumber and other building material costs as well as a lack of inventory due to a shortage of buildable lots offset solid demand for new home sales in December.
Rising material costs led by a huge upsurge in lumber prices along with a resurgence of the coronavirus across much of the nation pushed builder confidence in the market for newly built single-family homes down three points to 83 in January, according to the latest NAHB/Wells Fargo Housing Market Index.
Chuck Fowke, chairman of the National Association of Home Builders and a custom home builder from Tampa, Florida, issued a statement after the Commerce Department lowered duties on Canadian lumber shipments into the United States.
In a strong signal that housing is leading the economic recovery, builder confidence in the market for newly-built single-family homes increased five points to hit an all-time high of 83 in September.
