NAHBWells Fargo housing market index rises to 46, highest since April
Republican election sweep boosts builder optimism for regulations supportive for industry
Industry faces challenges from labor shortages, high materials costs, and mortgage rates

Nov 18 Reuters U.S. homebuilder sentiment rose to a sevenmonth high in November and expectations for sales in the next six months surged to the highest in about twoandahalf years after a Republican election sweep fueled optimism for regulatory changes that could lead to more residential construction, a survey said on Monday.

The National Association of Home BuildersWells Fargo Housing Market Index rose to 46 this month, the highest since April, from 43 in October. The reading was higher than all 28 estimates in a poll of economists by Reuters, which had a median expectation for 43.

NAHB39;s measures of current sales and traffic of potential buyers both ticked higher, while expectations for sales over the next six months shot up to the highest since April 2022.

With the elections now in the rear view 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, a custom homebuilder from Wichita, Kansas. This is reflected in a huge jump in builder sales expectations over the next six months.

The Nov. 5…