Confidence among home builders soared in November as the election of Donald Trump and Republican control of both houses of Congress increased optimism about the housing market.
The National Association of Home Builders (NAHB) announced that its monthly confidence index rose to 46, the highest level since April. This exceeded even the most bullish expectations and was 3 percentage points above October's level.
This boost in sentiment reflects builders' belief that the incoming administration and its Republican allies on Capitol Hill will adopt policies that encourage increased construction activity.
“With the election in the rearview mirror, builders believe that Republican control of all levers of power in Washington will lead to significant deregulation of the industry and the construction of more homes and apartments. “We are increasingly confident that Carl Harris. “This is reflected in the significant rise in builder sales forecasts for the next six months.”
All three components of the confidence index rose in November. Builders are more optimistic about current sales, expect increased traffic from future buyers, and are optimistic about future sales.
Housing affordability is a major concern for many Americans, especially young Americans looking to buy their first home. According to the National Association of Realtors, the share of first-time homebuyers in all purchases has fallen to its lowest level in decades.
Increased housing construction could relieve some of that pressure, especially if long-term interest rates fall and mortgage costs come down.
