By Ovunc Kutlu
ISTANBUL (AA) - Homebuilder sentiment in the US fell for the 12th consecutive month in December, reaching its lowest level in more than 10 years, according to a survey released on Monday.
The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) dropped two points to 31 – its lowest since mid-2012.
The last time the index saw a monthly increase was last December, when it rose to 84.
While a level above 50 is considered positive for the US housing sector, the index measures sentiment among homebuilders and is considered an important indicator for housing investment and consumer spending on appliances and furnishings, which have an impact on the overall economy.
"High mortgage rates, elevated construction costs running well above the inflation rate and flagging consumer demand due to deteriorating affordability conditions have dragged builder sentiment down every month in 2022,” the association said in a statement.
NAHB Chairman Jerry Konter said: "In this high inflation, high mortgage rate environment, builders are struggling to keep housing affordable for home buyers."
NAHB Chief Economist Robert Dietz said the NAHB expects weaker housing conditions to persist next year and forecasts a recovery in 2024.