WASHINGTON – Builder confidence for newly built single-family homes increased five points to hit an all-time high of 83 in September, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).
This is a strong signal that housing is leading the post-COVID-19 economic recovery.
The previous highest reading in the 35-year history of the series was 78. It was set in December 1998 and matched last month.
“Historic traffic numbers have builders seeing positive market conditions, but many in the industry are worried about rising costs and delays for building materials, especially lumber,” said NAHB Chairman Chuck Fowke. “More domestic lumber production or tariff relief is needed to avoid a slowdown in the market in the coming months.”
All the HMI indexes posted their highest readings ever in September. The index gauging current sales conditions rose four points to 88, the component measuring sales expectations in the next six months increased six points to 84, and the measure charting traffic of prospective buyers posted a nine-point gain to 73.
The HMI in the South—the region that includes Texas—rose eight points to 79.
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