Homebuilder Confidence Rises to 8-Month High

A monthly reading of home builder sentiment increased two points in November to 70, according to the National Association of Home Builders. This comes after a four point increase in October.

November’s reading is the highest since March 2017 and the second highest on record since before the recession. The index stood at 63 in November 2016. Following the 2016 presidential election, builders were already quite optimistic, anticipating that the new administration would ease regulations contributing to higher builder costs.

“Demand for housing is increasing at a consistent pace, driven by job and economic growth, rising homeownership rates and limited housing inventory,” said NAHB Chief Economist Robert Dietz. “With these economic fundamentals in place, we should see continued upward movement of the single-family housing market as we close out 2017.”

Home builders are also benefiting from a severe shortage of existing homes for sale. New construction tends to be more expensive and buyers have few options. Millennials who are beginning to buy homes are also skipping starter homes and going straight to more expensive, new products. Regionally, on a three-month moving average, builder confidence in the Northeast increased five points to 54 and rose one point to 69 in the South. Both the West and Midwest remained unchanged at 77 and 63, respectively.

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In this issue:

Renting Is Overtaking the Housing Market

Weekly Mortgage Applications Rise As Rates Pull Back

US New Home Sales Soar to Highest Level in 10 Years

Senate Version of Tax Bill Saves Mortgage Interest Deduction but Realtors Still Unhappy

Homebuilder Confidence Rises to 8-Month High

Foreclosure Crisis Lurks in Hurricane Damaged Areas

Fannie Mae Launches Program to Help Boost Homebuilding

Facebook Announces New Features for Home Sales

8 Markets Where Housing Inventory Is Actually Increasing

Three Facebook Updates That Affect the Way You Advertise Your Real Estate Business

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