Demand Raises Builder Confidence

Credit: Arizona Daily Star

Despite rising materials costs and supply shortages, builder sentiment for new single-family homes increased four points in October, rising to 80 in the NAHB/Wells Fargo Housing Market Index.

Even while noting the strong demand for and sales of new supply, analysts noted the looming threat of supply chain disruption, labor shortages and other cost-inflating factors, such as the likelihood of increasing interest rates.

Like most indices, a score greater than 50 on the HMI is considered positive. All three indicators under HMI were greater than 50 and each gained over September. Current conditions scored 87, sales expectations for the coming six months scored 84, and prospective buyer traffic scored 65. (Source)

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