Higher inflation and longer wait times are not turning buyers away from the country’s homebuilders. With demand still increasing, homebuilder confidence is increased more than anticipated in November.
Confidence of Homebuilders increased by 3 points to reach 83 on the index of National Association of Home Builders (NAHB).
Index more than 50 is generally considered positive. Expectations of analysts have been for confidence to remain same at 80.
NAHB Chairman Chuck Fowke said, “The solid market for home building continued in November despite ongoing supply-side challenges. Lack of resale inventory combined with strong consumer demand continues to boost single-family home building.”
There are three components to this index namely Current sales conditions, Buyer traffic and Sales expectations. Current sales conditions increased by 3 points to reach 89. Buyer traffic also rose 3 points to reach 68. Sales expectations were same at 84.
While buyers are in more numbers, most of the components of building a home are not. Due to this some builders of the country such DR Horton slowed sales for the purpose of making sure that they can deliver on time.
Donald Horton recently stated, “We continued intentionally restricting our home sales pace by selling homes later in the construction cycle to align with our production levels and better ensure the certainty of home close dates for our homebuyers.”
Builders are still experiencing supply chain disruptions as well as a massive labor shortage. They are also not able to find enough land on which they can build.
