T
he construction industry is anticipating a boost from the new administration's potential loosening of regulations, which could lead to increased sales. Builder confidence has been steadily rising since August, and this trend is expected to continue now that the presidential election is over, providing more certainty about future prospects.

    The NAHB/Wells Fargo Housing Market Index rose three points to 46 in November, marking the third consecutive month of improving sentiment. The outlook for the next six months was particularly positive, with builders expressing increased confidence in regulatory relief and its impact on construction.

    According to National Association of Home Builders Chairman Carl Harris, "builders are expressing increasing confidence that Republicans gaining all the levers of power will result in significant regulatory relief." This is reflected in a significant jump in builder sales expectations over the next six months. The index's three measures - current sales conditions, six-months sales outlook, and prospective buyer traffic - all increased in the latest survey.

    However, other challenges remain, including tariffs that could increase building supply costs, labor shortages exacerbated by potential changes in immigration policies, and concerns about higher inflation and interest rates. "The housing market faces a complicated mix of upside and downside risks as policy shifts in Washington," said Robert Dietz, chief economist at the NAHB.

    Price cuts continue to be a common strategy among home builders, with 31% reducing prices in November, mostly unchanged since July. The average price reduction was 5%, while 60% used sales incentives to close deals. Regional differences were also noted, with builders in the Northeast showing the most confidence, followed by the Midwest, South, and West.