Sales Growth Lifts Builder Confidence to New Record High

In another sign that housing continues to lead the economy forward, builder confidence in the market for newly-built single-family homes increased five points to 90 in November, shattering the previous all-time high of 85 recorded in October, according to the latest NAHB/Wells Fargo Housing Market Index (HMI). Builder confidence levels have hit successive all-time highs over the past three months.

"Historically low mortgage rates, favorable demographics and an ongoing suburban shift for home buyer preferences have spurred demand and increased new home sales by nearly 17 percent in 2020 on a year-to-date basis," said NAHB chairman Chuck Fowke, a custom home builder from Tampa, Fla. "Though builders continue to sign sales contracts at a solid pace, lot and material availability is holding back some building activity. Looking ahead to next year, regulatory policy risk will be a key concern given these supply-side constraints."