Homebuilder confidence in the South fell slightly in November, dropping one point to an index of 42, its third-lowest level of the year. While the dip marks a slowdown, confidence remains seven points higher than the same time last year, and the region’s three-month moving average held steady at 42.
Nationally, homebuilder confidence rose three points to 46, its highest level since April and the third-best reading of the year. The Northeast led the gains with a seven-point jump to 59, while the Midwest rose six points to 49.
- Meanwhile, the West saw a sharp decline, falling five points to 39, now the lowest-performing region.
Key indicators showed improvement, with future sales expectations jumping seven points to 64 and current single-family sales rising two points to 49. Traffic of prospective buyers also ticked up three points to 32.
What They’re Saying: “While builder confidence is improving, the industry still faces many headwinds such as an ongoing shortage of labor and buildable lots along with elevated building material prices,” said NAHB Chief Economist Robert Dietz. He also pointed to policy uncertainties and rising long-term interest rates as challenges for the sector.
Bottom Line: The South’s decline comes after years of driving national housing growth, making this slowdown a natural adjustment. With confidence still above last year’s levels and the spring buying season approaching, the pullback may be short-lived.
