Due to high prices and costs and continued supply shortages, the US homebuilder confidence index fell to a 13-month low in August.

National Association of Home Builders (NAHB)/Wells FargoAccording to data released on Tuesday, the index that measures the confidence of builders declined for the third month in a row, falling from 80 in July to 75, the biggest drop since April 2020. Economists expect the median value to be flat at 80.

Although the recent drop in the prices of construction materials such as timber is good news for builders, some buyers have still not entered the market due to strong demand and low inventories. As supply chain restrictions begin to improve, potential buyers are more likely to get more options and lower prices in the short term, NAHB said.

“Our expectations are that production bottlenecks will ease in the next few months and that the market should return to a more normal state,” NahB chief economist Robert Dietz said in a statement.