Summary

In accordance with the National Association of Homebuilders, the expectations of homebuilders for future sales declined in January after six consecutive increases. The general NAHB/Wells Fargo Housing Market Index still managed a one-point increase to 47, as current sales conditions rose by three points to 51 and traffic from prospective buyers rose by two points to 33. Expectations for the subsequent six months slipped to 60 in January from 66 in December. Builders are hopeful about improving economic growth and more favorable regulatory conditions, but concerned that tariffs on constructing materials and a bigger U.S. budget deficit will raise inflation and mortgage rates. An index reading below 50 indicates that more builders see conditions as poor than good. After the recent stronger-than-expected report on Housing Starts from the Census Bureau and the Department of Housing and Urban Development, NAHB Chairman Carl Harris said the next. “The industry expects to see a slight gain for single-family home constructing in 2025 due to a persistent housing shortage and ongoing solid economic conditions.” Constructing permits in 2024 rose 6.6% in 2024, which is a positive sign for 2025, the NAHB said. On Monday, the Census Bureau and HUD will report Recent Home Sales for December. We expect a 2.5% year-over-year increase to a seasonally adjusted annual rate of 670,000. That is higher than the 15-year average of 550,000, but well below the 2005 peak of over 1.3 million. On Tuesday,