12:21 PM EST, 11/18/2024 (MT Newswires) -- US homebuilder confidence increased for the third consecutive month in November as election uncertainty subsided, with builders forecasting market conditions to continue to improve following Donald Trump's return to the White House, according to National Association of Home Builders and Wells Fargo data released Monday.

The housing market index, which measures builder confidence in the new single-family home market, rose to 46 this month from 43 in October, which was the consensus in a survey compiled by Bloomberg.

The index gauging current sales conditions increased two points sequentially to 49 in November, while the one charting expectations over the next six months added seven points to 64. The index measuring traffic of prospective buyers moved up by three points to 32.

"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," NAHB Chairman Carl Harris said. "This is reflected in a huge jump in builder sales expectations over the next six months."

Trump defeated Kamala Harris in the presidential election on Nov. 5.

The share of homebuilders using sales incentives declined to 60% in November from 62% the previous month, with the average price reduction falling to 5% from 6%, according to the report.

"While builder confidence is improving, the industry still faces many headwinds such as an ongoing shortage of labor and buildable lots along with elevated building material prices," NAHB Chief Economist Robert Dietz said. "Moreover, while the stock market cheered the election result, the bond market has concerns, as indicated by a rise for long-term interest rates.