The National Association of Home Builders keeps a monthly measure of how confident home builders are in the market for newly built single-family homes. Its Housing Market Index is a closely followed market barometer, scored on a scale where any number above 50 means more surveyed builders feel conditions are good than poor. In November, the index hit 46, the third consecutive monthly gain and three points higher than the month before. The improvement was attributed to post-election expectations that regulatory relief may be on the way. Nevertheless, Robert Dietz, NAHB’s chief economist, says challenges remain. “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,” Dietz says. Still, the index component measuring sales expectations for the next six months moved seven points higher to 64, an indication that home builders see brighter days ahead. (source)
