In a further show of strength for the [U.S.] housing sector, builder confidence in the market for newly-built single-family homes increased two points to 85 in October, further surpassing the previous all-time high of 83 recorded in September, according to the latest NAHB/Wells Fargo Housing Market Index (HMI). These are the first two months the index has ever been above 80. The housing market continues to be a bright spot for the economy, supported by increased buyer interest in the suburbs, exurbs and small towns. Moreover, NAHB analysis published last week showed that new single-family home sales are outpacing starts by a historic margin. Bridging this gap will require either a gain in construction volume or reductions in available inventory, which is already at a historic low in terms of months’ supply.
CHBA National Commentary: As in Canada, the U.S. housing market is continuing to perform well, providing needed economic activity as many countries begin to weather a second wave of COVID-19. In Canada, the federal government should ensure that it’s recovery plans include investments that will allow the residential construction sector to meet continuing and evolving housing demand, grow new and appropriate housing supply where it is needed most, and creating jobs and investment in communities across the country. CHBA is engaged with the federal government on a range of options, and is monitoring business and consumer confidence, as well as other potential drags on construction activity including lumber prices and other supply chain issues.
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