The National Association of Home Builders/Wells Fargo Housing Market Index increased to 85 in October, its highest reading on record, up two points from the September reading of 83.
NAHB Chairman Chuck Fowke noted that the all-time high in buyer traffic, low interest rates and the need to work and school from home has kept demand high. Chairman Fowke also stated that shortages of lots, labor, lumber and other key building materials are lengthening construction times and making it more challenging to build affordable homes.
“The housing market continues to be a bright spot for the economy, supported by increased buyer interest in the suburbs, exurbs and small towns,” said NAHB Chief Economist Robert Dietz. “NAHB analysis published last week showed that new single-family home sales are outpacing starts by a historic margin. Bridging this gap will require either a gain in construction volume or reductions in available inventory, which is already at a historic low in terms of month’s supply.”
The HMI component measuring buyer traffic increased one point to 74. The component measuring current sales conditions increased 2 points to 90, and the component measuring sales expectations in the next six months rose three points to 88.
The three-month moving averages for regional HMI scores, the Northeast gained six points to 82, the Midwest increased three points to 75, and the West moved five points higher to 80. The South jumped three points to 82.
Read the NAHB release.