US Builder Confidence Backed By Soaring Demand

The US National Association of Home Builders said, Tuesday, that builder confidence in the new home sales market increased in November for the third successive month despite several challenges builders are encountering in the construction market as the NAHB/Wells Fargo Housing Market Index rose 3 points from its October level to 83.

NAHB also announced low inventories and strong buyer demand are encouraging the association’s new home builder members even as the supply-side challenges still persist.

In addition to well publicized concerns over building materials and the national supply chain, labour and building lot access are key constraints for housing supply.

Lot availability is at multi-decade lows and the construction industry currently has more than 330,000 open positions.

The HMI index gauging current sales conditions rose 3 points to 89 and the gauge charting traffic of prospective buyers also posted a 3-point gain to 68. The component measuring sales expectations in the next six months hold steady at 84.