Home builder sentiment rose for the third straight month, per the National Association of Home Builders (NAHB), who reported that their Housing Market Index increased three points to 46 in November. Any score over 50 on this index, which runs from 0 to 100, signals that more builders view conditions as good than poor.
What’s the bottom line? While confidence remains below 50 in contraction territory, there was improvement in all three index components (buyer traffic, current and future sales expectations). Plus, future sales expectations jumped 7 points to 64, moving well above 50 into expansion territory. NAHB Chair, Carl Harris, confirmed that “builders anticipate an improved regulatory environment in 2025.”