US: Homebuilder confidence extends gains in November - Wells Fargo

The NAHB/Wells Fargo Housing Market Index (HMI) rose 2 points to 70 in November while the expectations of future sales fell 1 point. According to analysts from Wells Fargo, builder sentiment put Hurricane Issues in the rearview.

Key Quotes: 

“The NAHB/Wells Fargo Housing Market Index (HMI) gained 2 points in November to 70. The index is now nearly back to its previous cycle high of 71 hit in March.”

“The strength in the HMI reflects growing confidence in employment and income prospects. Builders are selling virtually everything they build relatively quickly but are concerned about rising costs and shortages of lots and skilled workers. 

“Present sales rose back to its cycle high of 77, while future sales fell 1 point off of its cycle high. Buyer traffic rose back to the critical 50 level, after remaining below that level for 5 months.”