Builder confidence fell two points in March 2020, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) – March 2020 released on Tuesday.

While the HMI fell from 74 points in February to 72 points in March, the index remains relatively high compared to average HMIs in 2019, the majority of which lay in the 60s. However, next month’s index will be the first to incorporate sentiment from the Coronovirus shutdown.

The HMI is a weighted average of Present Single-Family Sales, Single-Family Sales for the Next Six Months, and Traffic of Prospective Buyers. A panel of builders rates the first two indices on a scale of “good,” “fair” or “poor” and the last index on a scale of “high to very high,” “average,” or “low to very low.” The subsequent indices are seasonally adjusted and then weighted in order to calculate the HMI. The HMI falls between 0-100.

The HMI Single Family Sales index also fell by two points from 81 in February to 79 in March. Likewise, the Traffic of Prospective Buyers index decreased from 57 in February to 56 in March. The Single Family Sales for the Next 6 Months index, however, made a sharper downturn from 79 in February to 75 in March.

Regionally, HMIs saw some movement in March as well. The Midwest, South and West all changed by three points between February and March with the South and West decreasing by three points (79 to 76 and 82 to 79 points, respectively), while the Midwest increased by three points (from 63 to 67 points). Meanwhile, the Northeast saw a modest decline of two points from 66 to 64.

Email Lillian Dickerson

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Inman Connect is LIVE tomorrow! Join us and thousands of your peers from wherever you are.Register Today×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription