Home builder confidence in the new, single-family construction market maintained momentum in the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The Index reading for October was 68, up four points from September. An above-50 reading indicates more builders have a positive outlook than a negative one.
“This month’s report shows that home builders are rebounding from the initial shock of the hurricanes,” said Granger MacDonald, chairman of the NAHB, in a statement. “However, builders need to be mindful of long-term repercussions from the storms, such as intensified material price increases and labor shortages.”
Home builders’ expectations regarding present and expected single-family home sales both rose in October, up five points to 75 and five points to 78, in order, while expected homebuyer traffic rose one point to 48.
“It is encouraging to see builder confidence return to the high 60s levels we saw in the spring and summer,” said Robert Dietz, chief economist of the NAHB. “With a tight inventory of existing homes and promising growth in household formation, we can expect the new-home market to continue to strengthen at a modest rate in the months ahead.”
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