Builder sentiment increased four points to 80 in October as buyer demand remained strong, 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 five points to 87; sales expectations in the next six months rose three points to 84; and buyer traffic increased four points to 65.
“Although demand and home sales remain strong, builders continue to grapple with ongoing supply chain disruptions and labor shortages that are delaying completion times and putting upward pressure on building material and home prices,” said NAHB Chairman Chuck Fowke, a homebuilder from Tampa, Fla.
The biggest challenge for builders during the coming months is expected to be affordability as they are forced to raise prices to meet rising construction costs. Some builders have slowed home sales because they are concerned they will not be able to deliver houses at a normal pace.
