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No home building hangover

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By Peter Boockvar - May 17th, 2010, 1:39PM

The end of the home buying tax credit on April 30th did little to impact the confidence of home builders as the May NAHB figure rose 3 pts to 22 and was 2 pts above expectations. Builders believe the April momentum can carry forward without the credit. The index is at the highest level since Aug ’07 and well off the record low of 8 back in Jan ’09 but 50 is the cutoff between growth and contraction and we were last there back in May ’06. Both Present conditions and Future outlook rose as did Prospective Buyers Traffic. Prospective buyers rose the most in the Northeast and West and saw modest gains in the Midwest and South. With optimism for the next 6 mo’s according to the NAHB, they believe “low interest rates, great selection, stabilizing prices, and a recovering job market – are taking the place of tax incentives to generate buyer demand.” The still huge amount of foreclosures creates the main challenge to homebuilding’s rebound.

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Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

5 Responses to “No home building hangover”

  1. Jojo Says:
    May 17th, 2010 at 1:53 pm

    “The still huge amount of foreclosures creates the main challenge to homebuilding’s rebound.”
    =============
    Foreclosures and excess inventory don’t seem to be a problem in good ‘ol Las Vegas!

    May 15, 2010
    Building Is Booming in a City of Empty Houses
    By DAVID STREITFELD

    …

    http://www.nytimes.com/2010/05/16/business/16builder.html

  2. JustinTheSkeptic Says:
    May 17th, 2010 at 2:16 pm

    Strike up the band! Build, build, build, the hell with all the inventory I (Mr. Banker), will keep foreclosers off the market forever, and ever….FOR I AM GOD.

  3. oldcodger Says:
    May 17th, 2010 at 2:23 pm

    Most apropos saying applies: “You can’t fix stupid!”

  4. jswap Says:
    May 17th, 2010 at 7:50 pm

    I wonder if any of the homebuilder confidence is predicated on the fact that California JUST BEGAN a $100 million new housing stimulus that will likely last for about 4-5 months. Considering that California is the most populous state, could this have any effect on the overall US new housing market? nahhhhhhh
    It’s a good thing for the homebuilders that California has so much extra savings lying around. Must be the rainy day fund.

  5. rktbrkr Says:
    May 18th, 2010 at 8:01 am

    I can’t think of a worser group of predictors than new home builders

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