Builder Confidence Still Strong
Builder confidence remains strong, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. In November, the Index recorded a 70; at 51 or higher, builder confidence is overall positive.
"Single-family builders are currently reporting ongoing positive conditions, spurred in part by low mortgage rates and continued job growth," Greg Ugalde, chairman of the NAHB, says. "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."
"We have seen substantial year-over-year improvement following the housing affordability crunch of late 2018, when the HMI stood at 60," Robert Dietz, chief economist at the NAHB, says. "However, lot shortages remain a serious problem, particularly among custom builders. Builders also continue to grapple with other affordability headwinds, including a lack of labor and regulatory constraints."
Source: National Association of Home Builders