The NAHB/Wells Fargo Housing Market Index remained unchanged at 63 in November. The Northeast, Midwest and West reported slight gains, while builder sentiment held steady in the South.
Builder Confidence Still-Solid Level
- Home builders’ sentiment held put at 63 in November, which was in line with expectations. Modest improvement in prospective buyers’ traffic offset a 2 point dip in expectations for future single-family home sales, while the present sales measure was unchanged.
- At the regional level, home builders reported a slight pickup in all areas, with the exception of the South, which saw no change.
Challenges for Housing Market Remain in Place
- The builder sentiment index is 2 points above its six-month average and remains at a level consistent with modest gains in home sales. Buyers appear to be balking at higher priced homes, causing builders to adjust their product mix.
- We continue to look for modest gains in the housing market in the year ahead, as higher home prices, low inventories and rising mortgage rates restrain affordability.