Builder sentiment increased from 43 in October to 46 in November; anything below 50 is considered negative for the National Association of Home Builders’ monthly survey, according to NAHB. It reached a record high of 90 in November 2020.
All three components of the homebuilder index increased, with current sales conditions climbing two points to 49; buyer traffic increasing three points to 32; and sales expectations in the next six months rising seven points to 64.
Thirty-one percent of builders reported cutting prices in November compared with 32% in October. The average price discount fell to 5% in November after rising to 6% in October. Sixty percent of builders were using sales incentives other than price cuts to improve sales in November compared with 62% in October.
“With the elections now in the rearview mirror, builders are expressing increasing confidence that Republicans gaining all the levers of power in Washington will result in significant regulatory relief for the industry that will lead to the construction of more homes and apartments,” said NAHB Chairman Carl Harris. “This is reflected in a huge jump in builder sales expectations over the next six months.”
