Builder Confidence Edges Up
The National Association of Home Builders (NAHB) reported that builder confidence improved in November. The survey registered a score of 16 up from 15 (downwardly revised) the previous month. The Midwest saw the largest increase up 5 points to 18, while the Northeast dropped 3 points to 13. Typically anything over a 50 shows market conditions favorable to builders while anything under 50 is considered poor. The survey NAHB has been conducting for 20 years of builders specifically single-family home sales.
The Home Builders did note that one of the survey factors that registers “future expectations” rose 2 points to 25. That category was up 5 points in October. The Home Builders are starting to feel cautiously optimistic for 2 reasons; financing conditions are improving (even if slightly), and home sales are happening (albeit slow). I anticipate this number will stay close to even or rise slightly over the winter months. If strong retail sales improve due to consumers feeling better, I’d anticipate the confidence index to rise as well.