Builder confidence in the single-family market jumped 3 points in October to 71 on the National Association of Home Builders/Wells Fargo Housing Market Index. That is the highest level since February 2018 and up from 68 in October of last year. Anything above 50 is considered positive sentiment.
Of the index’s three components, current sales conditions rose 3 points to 78, sales expectations over the next six months jumped 6 points to 76 and buyer traffic rose 4 points to 54.
“The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months,” said Robert Dietz, chief economist at the NAHB. “However, builders continue to remain cautious due to ongoing supply side constraints and concerns about a slowing economy.