Builder Confidence Remains Near 2019 Peak
Each month, the National Association of Home Builders surveys builders to gauge their confidence in the market for newly built homes. The NAHB's Housing Market Index scores responses on a scale where any number above 50 indicates that more builders view conditions as good than poor. In November, the index fell one point to 70 but remains near its 2019 peak of 71. Greg Ugalde, NAHB's chairman, says builders are reporting positive conditions. “Single-family builders are currently reporting ongoing positive conditions, spurred in part by low mortgage rates and continued job growth,” Ugalde said. “In a further sign of solid demand, this is the fourth consecutive month where at least half of all builders surveyed have reported positive buyer traffic conditions.” Among the surveys three main components, the one measuring sales expectations for the next six months scored the highest at 77. That builders are feeling confident about future sales is a good sign for the housing market, as an increase in new residential construction can help balance inventory levels and further moderate price increases. More here.