U.S. Homebuilder Confidence Improves Much More Than Expected In November

(RTTNews) - Homebuilder confidence in the U.S. has improved by much more than anticipated in the month of November, according to a report released by the National Association of Home Builders on Monday.

The report said the NAHB/Wells Fargo Housing Market Index climbed to 46 in November after rising to 43 in October. Economists had expected the index to inch up to 44.

With the much bigger than expected increase, the housing market index reached its highest level since hitting 51 in April.

"With the elections now in the rearview mirror, 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," said NAHB Chairman Carl Harris.

The advance by the housing market index reflected increases by all three sub-indices, with the component measuring sales expectations in the next six months surging to 64 in November from 57 in October.

The gauge charting traffic of prospective buyers also climbed to 32 in November from 29 in October, while the index charting current sales conditions rose to 49 in November from 47 in October.

The NAHB said the latest HMI survey also revealed that 31 percent of homebuilders cut prices in November, with the share continuing to hover between 31 percent and 33 percent.

Meanwhile, the average price reduction was 5 percent, slightly below the 6 percent rate posted in October, the NAHB said.

The Commerce Department is scheduled to release a separate report on Tuesday on new residential construction in the month of October.

Housing starts are expected to decrease to an annual rate of 1.340 million in October after tumbling to a rate of 1.354 million in September.