Michael Sasso of Bloomberg reports that US homebuilder sentiment reached a seven-month high after the election. Sasso writes:
Confidence among US homebuilders advanced to a seven-month high in November on a jump in sales expectations and optimism a Trump administration will ease regulatory burdens.
A gauge of housing market conditions from the National Association of Home Builders and Wells Fargo climbed 3 points to 46 this month, exceeding all estimates in a Bloomberg survey of economists.
All three components of the index rose, led by the six-month sales outlook, which increased 7 points to the highest level since April 2022 on hope the Republican sweep in Washington will mean looser regulation and more construction. […]
Builders have blamed uncertainty over the presidential election for restraining sales recently, along with mortgage rates that rebounded after hitting a two-year low in September. NAHB Chief Economist Robert Dietz said Donald Trump’s election two weeks ago only alleviates some of the industry’s worries. […]
According to the NAHB survey, 31% of builders reported cutting home prices to lure buyers. The average price reduction eased to 5% this month, while the share of builders using sales incentives fell slightly to 60%.
Among US regions, builder sentiment rose in the Northeast and Midwest, while slipping in the South and West.
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