After rising for three straight months, home builder sentiment held steady at 46 this month, per the National Association of Home Builders (NAHB). While confidence remains in contraction territory below 50 (the breakeven point on the Housing Market Index, which runs from 0 to 100), it is at the highest level since April.
What’s the bottom line?
Among the three index components, buyer traffic (31) remains muted while current sales expectations (48) are just below the 50 breakeven level and future sales expectations (66) continue to move higher in expansion territory. NAHB Chair, Carl Harris, noted that, “While builders are expressing concerns that high interest rates, elevated construction costs and a lack of buildable lots continue to act as headwinds, they are also anticipating future regulatory relief in the aftermath of the election. This is reflected in the fact that future sales expectations have increased to a nearly three-year high.”