The January NAHB Housing Market Index, which is a real time reading on builder confidence, fell one point to 83…but it remains at a very strong level. Any reading above 50 signals expansion. For perspective, this index was at 80 in October and 83 in November and reached an all-time high of 90 in November 2020. Looking at the internals – Current Sales – unchanged at 90 Future Expectations – fell 2 points to 83 Buyer Traffic – fell 2 points to 69 The NAHB Chairman, Chuck Fowke, said, “Higher material costs and lack of availability are adding weeks to typical single-family construction times. NAHB analysis indicates the aggregate cost of residential construction materials has increased almost 19% since December 2020.” Bottom line, builder confidence remains extremely strong, even in the face of higher building material costs and the lack of skilled labor.