The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) declined three points to 62 in November, after reaching a 10-year high in October.
Two of the three index components posted losses in November. Sales expectations fell five points to 70 and current sales conditions declined three points to 67. Buyer traffic rose one point to 48.
The three-month moving averages for the index increased in two of the four regions. The West increased four points to 73 and the Northeast rose three points to 50. The Midwest and the South remained unchanged at 60 and 65, respectively.
“Even with this month’s drop, builder confidence has remained in the 60s for six straight months — a sign that the single-family housing market is making long-term headway,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. “However, our members continue to voice concerns about the availability of lots and labor.”
“The November report is pullback from an unusually high October, and is more in line with the consistent, modest growth that we have seen throughout the year,” said NAHB Chief Economist David Crowe. “A firming economy, continued job creation and affordable mortgage rates should keep housing on an upward trajectory as we approach 2016.”
Read the NAHB release.