The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) increased 3 points to 46 in November, up from 43 in October.
“With the elections now in the rearview mirror, builders are expressing increasing confidence that Republicans gaining all the levers of power in Washington will result in significant regulatory relief for the industry that will lead to the construction of more homes and apartments,” said NAHB Chairman Carl Harris.
“While builder confidence is improving, the industry still faces many headwinds such as an ongoing shortage of labor and buildable lots along with elevated building material prices,” said NAHB Chief Economist Robert Dietz. “Moreover, while the stock market cheered the election result, the bond market has concerns, as indicated by a rise for long-term interest rates. There is also policy uncertainty in front of the business sector and housing market as the executive branch changes hands.”
The survey also showed that 31% of builders cut home prices in November, while the average price reduction was 5%, slightly below the 6% rate in October. The Index charting current sales conditions in November rose two points to 49, the component measuring sales expectations in the next six months increased seven points to 64 and the gauge charting traffic of prospective buyers posted a three-point gain to 32.
Looking at the three-month moving average for regional HMI scores, the Northeast increased four points to 55, the Midwest moved three points higher to 44, the South edged up by one point to 42, and the West held steady at 41.
Read the NAHB release.
