The National Association of Home Builders (NAHB) reports that after months of growth, the Consumer Confidence Index dropped by 7.5% in June to its lowest level since September 2017.
The Index fell to 121.5 in June from 131.3 in May, and the NAHB associated the drop to optimism waning on the short-term economy and labor market amid trade tensions with China and Mexico.
According to the NAHB report, the consumers’ assessment of both current and short-term conditions weakened in June, with just 1.7% reported feeling “good” and 36.7% having a “bad” assessment.
The share of respondents reporting jobs were “plentiful” decreased by 1.3%, and an increase of 4.6% was reported in those who jobs as “hard to get,” which is the highest since November 2017.
“Though consumer confidence remained at a high level, the continued uncertainty, especially related to the recent escalation in trade and monetary policy may result in further volatility in the index,” the NAHB states.
Drops in confidence, though, have not diminished the desire to buy a home. The NAHB states that the share of people who plan on buying a home over the next six months increased to 6.8% in June.
The National Association of Home Builders (NAHB) reported last month that although 53% of buyers were actively seeking a home in Q1 2019, 46% said they were having issues finding an affordable home.
The NAHB also reported that those not being able to find a home in their desired neighborhood was a barrier for 40% of potential buyers, and 38% said they couldn’t find a home with features they want.
According to the report, the share of buyers who consider high prices the biggest hurdle fell 5 points when compared to 2018. The amount of people who couldn’t find a home in the proper neighborhood fell 2 points and there was no change for people who couldn’t find home with features they want.