Builder sentiment increased three points to 83 in November as buyer demand remained strong; analysts had expected it to remain unchanged at 80, according to cnbc.com. It reached a record high of 90 in November 2020.
Any reading above 50 indicates a positive market; the National Association of Home Builders/Wells Fargo Housing Market Index had fallen to 30 in April 2020.
Of the homebuilder index’s three components, current sales conditions rose three points to 89; buyer traffic increased three points to 68; and sales expectations in the next six months were unchanged at 84.
“The solid market for homebuilding continued in November despite ongoing supply-side challenges,” said NAHB Chairman Chuck Fowke, a homebuilder from Tampa, Fla. “Lack of resale inventory combined with strong consumer demand continues to boost single-family home building.”
Builders continue to experience supply chain disruptions and a massive labor shortage but also are facing challenges finding available land for building. Some builders have slowed home sales to ensure they can deliver houses on time.