The National Association of Home Builders/Wells Fargo Housing Market Index increased to 90 in November, beating the previous all-time of 85 recorded in October.
NAHB Chairman Chuck Fowke states that housing remains strong and buyer traffic remains at an all time high. Fowke notes that lot and material availability is holding back some building activity and regulatory policy risk will be a key concern given these supply-side constraints.
“Another record high for the HMI reflects that housing is a bright spot for the economy,” said NAHB Chief Economist Robert Dietz. “However, affordability remains an ongoing concern, as construction costs continue to rise and interest rates are expected to move higher as more positive news emerges on the coronavirus vaccine front. In the short run, the shift of housing demand to lower density markets such as suburbs and exurbs with ongoing low resale inventory levels is supporting demand for home building.”
The HMI component measuring buyer traffic increased three points to 77. The component measuring current sales conditions increased 6 points to 96, and the component measuring sales expectations in the next six months rose one point to 89.
The three-month moving averages for regional HMI scores, the Northeast increased two points to 83, the Midwest jumped six points to 80, the South rose four points to 86 and the West increased four points to 94.
Read the NAHB release.