The

stock
market
was
not
the
only
thing
that
saw
a
boost
after
the

presidential
election
earlier
this
month.

Homebuilder
confidence
also
rose
in
November,
marking
the
third
straight
month
of
increases.

The National
Association
of
Home
Builders
(NAHB)/Wells
Fargo Housing
Market
Index
(HMI)
rose
three
points month
over
month to
a
reading
of
46
in
November.
According
to
the
data,
builders
expect
market
conditions
to
continue
to
improve
after
Republicans
won
control
of
the

White
House
and

Congress.

The
report
also
found
that
fewer
builders
are
using
incentives
in
November,
with
the
share
dropping
from
62%
to
60%.
Additionally,
the
average
price
deduction
fell
to
5%,
down
from
6%
a
month
prior,
with
31%
of
builders
reporting
that
they
cut
prices.
This
percentage
has
remained
relatively
flat
since
July.

In
addition,
the
NAHB
reported
that
homebuilders’
gauge
of
current
sales
conditions
rose
two
points
to
49.
The
gauge
measuring
traffic
of
prospective
buyers
also
posted
a
three-point
gain
to
32,
while
the
component
charting
sales
expectations
over
the
next
six
months
jumped
seven
points
to
64.

“Builders
are
expressing
increasing
confidence
that
Republicans
gaining
all
the
levers
of
power
in
Washington
will
result
in
significant
regulatory
relief
for
the
industry
that
will
lead
to
the
construction
of
more
homes
and
apartments,”
NAHB
Chairman
Carl
Harris
said
in
a
statement.
“This
is
reflected
in
a
huge
jump
in
builder
sales
expectations
over
the
next
six
months.”

The
three-month
moving
averages
for
the
HMI
rose
from
October
to
November
in
three
of
the
four
regions
tracked
by
the
index.
The
South
gained
one
point
for
a
reading
of
42,
the
Northeast
rose
by
four
points
to
55
and
the
Midwest
jumped
three
points
to
44.
Meanwhile,
the
West
held
steady
at
a
reading
of
41.

NAHB
chief
economist
Robert
Dietz
noted
that
builders
are
not
out
of
the
woods
just
yet.

“The
industry
still
faces
many
headwinds
such
as
an
ongoing
shortage
of
labor
and
buildable
lots
along
with

elevated
building
material
prices,”
Dietz
said
in
a
statement.
“Moreover,
while
the
stock
market
cheered
the
election
result,
the
bond
market
has
concerns,
as
indicated
by
a
rise
for
long-term
interest
rates.
There
is
also
policy
uncertainty
in
front
of
the
business
sector
and
housing
market
as
the
executive
branch
changes
hands.”

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