Home builder confidence gets a boost after the election

The stock market wasn’t the only thing that saw a boost after the presidential election earlier this month. Homebuilder confidence also rose in November, marking the third straight month of increases.

I National Association of Home Builders (NAHB)/ Wells Fargo The Housing Market Index (HMI) rose three points month-on-month to 46 in November. According to the data, builders expect market conditions to continue to improve after the Republicans win control The White House again Congress.

The report also found that fewer builders used incentives in November, with the share falling from 62% to 60%. Additionally, the rate of price reductions fell to 5%, down from 6% last month, and 31% of builders reported cutting prices. This percentage has remained low since July.

In addition, the NAHB reported that the home builders’ gauge of current sales conditions rose two points to 49. A gauge measuring the traffic of prospective buyers also posted a three-point gain to 32, while the segment setting sales expectations for the next six months jumped seven. score out of 64.

“Builders are expressing increasing confidence that Republicans getting the reins of power in Washington will lead to significant deregulation in the industry that will lead to more homes and apartments being built,” said NAHB Chairman Carl Harris in a statement. “This is reflected in the large increase in builders’ sales expectations over the next six months.”

HMI’s three-month moving averages rose from October to November in three of the four states tracked by the index. The South gained one point to read 42, the Northeast rose four points to 55 and the Midwest jumped three points to 44. Meanwhile, the West is firmly in the 41st reading.

NAHB chief economist Robert Dietz noted that builders aren’t out of the woods just yet.

“The industry is still facing many problems such as the ongoing shortage of workers and construction sites and the high prices of construction materials,” Dietz said in a statement. “Additionally, while the stock market is cheering the outcome of the election, the bond market has concerns, as indicated by the rise in long-term interest rates.” There is also policy uncertainty in front of the business sector and the housing market as the executive branch changes hands.”

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