US Election 2024: Builder Sentiment Jumps As Polls-Led Uncertainty Ends, Retail’s Upbeat
By Stocktwits Inc | First Published Nov 18, 2024, 11:26 PM ISTAccording to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence in the market for newly built single-family homes stood at 46 in November, up three points from October.
U.S. builder sentiment improved for the third straight month and reportedly hit its seven-month highs led by expectations of improvement in market conditions with Republicans winning control of the White House and Congress.
According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence in the market for newly built single-family homes stood at 46 in November, up three points from October.
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NAHB Chairman Carl Harris, a custom home builder from Wichita, Kan, said 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.
This will lead to the construction of more homes and apartments, he said. “This is reflected in a huge jump in builder sales expectations over the next six months.”
NAHB Chief Economist Robert Dietz believes that despite the improvement in builder confidence, the industry still faces many headwinds such as an ongoing shortage of labor and buildable lots along with elevated building material prices.
“Moreover, while the stock market cheered the election result, the bond market has concerns, as indicated by a rise in long-term interest rates. There is also policy uncertainty in front of the business sector and housing market as the executive branch changes hands,” he said.
Meanwhile, the latest HMI survey showed that 31% of builders trimmed home prices in November — a figure that has remained mostly unchanged since July, hovering between 31% and 33%.
Following the release of the report, the Direxion Daily Homebuilders & Supplies Bull 3X Shares ($NAIL), which seeks daily investment results of 300% of the performance of the Dow Jones U.S. Select Home Construction Index, was trading 0.43% higher.
Retail sentiment on Stocktwits continued to trend in the ‘bullish’ territory (59/100) compared to a week ago.
Many Stocktwits users are expressing optimism on the ETF’s performance in the coming times.
Similarly, the SPDR S&P Homebuilders ETF ($XHB), the Invesco Building & Construction ETF ($PKB), and the iShares US Home Construction ETF ($ITB) were trading in the green on Monday.
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