Homebuilder sentiment falls again, but bottom may be near

Homebuilders were less confident about their business in December, but they are starting to see potential green shoots.

Builder sentiment in the single-family housing market dropped 2 points to 31 in December on the National Association of Home Builders/Wells Fargo Housing Market Index. Anything below 50 is considered negative.

This is the 12th straight month of declines and the lowest reading since mid-2012, with the exception of a very brief drop at the start of the Covid pandemic. The index stood at 84 in December of last year.

“The silver lining in this HMI report is that it is the…