Home builder confidence beat expectations jumping to a 5-month high, according to the latest data from the National Association of Home Builders…(NAHB)
- The NAHB/Wells Fargo Housing Market Index (HMI) jumped 3 points to 83 which is the highest reading since May.
- Economists had projected confidence to hold steady at 80.
Regionally, the South and the West led the way with a reading of 87 followed by the Midwest (75) and the Northeast (69).
- This was the highest reading for the South all year and was the highest reading since May for the West.
Home builder confidence for current conditions almost jumped into the 90’s with a reading of 89 in October. The highest level since February.
- With regards to the next 6 months, home builder confidence held steady at 84 which is the highest ranking of the year. Confidence in traffic of prospective buyers jumped 3 points to 68 the highest level since June.
NAHB Chief Economist Robert Dietz noted that lot inventory and labor remain the major impediments to more building…
- “In addition to well publicized concerns over building materials and the national supply chain, labor 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. Policymakers need to focus on resolving these issues to help builders produce more housing to meet strong market demand.”
