Builder Confidence Sets New Record High in October

National Association of Home Builders (NAHB) /Wells Fargo Housing Market Index (HMI) indicates that builder confidence in the market for newly-built single-family homes advanced 2-points in October, to a new all-time high reading of 85. The previous highest reading was 83 and was set last month. This marks the first two month the index has ever been above 80. In their analysis summary, the NAHB noted that the housing market remains a bright spot in the U.S. economy. As buyers’ interest in the suburbs, exurbs and small towns continues to increase. Buyer traffic remains elevated and record-low interest rates are keeping demand strong as of the concept of ‘home’ has taken on greater significance as a place to work, study and play during and after the COVID-19 pandemic. They conclude that building affordable homes remains a challenge due to a shortage of lots, labor and lengthening construction times.