NAHB Index Up
Each of the HMI’s three component indexes registered a fourth consecutive month of improvement in January. The component gauging current sales conditions rose three points to 25, which was its highest point since June of 2007. The component gauging sales expectations in the next six months also rose three points, to 29 -- its highest point since September 2009. And the component gauging traffic of prospective buyers rose three points to 21, its highest point since June of 2007.
The usual codiciles apply this being an index and remaining deep in depressed territory. Still look at the dates the components were last this "good." every one a disaster time for the home builders. Earlier I commented on HCN that I thought there would be a pick up in construction far more optimistic than consensus. I base that in part on the running out of tax clawbacks the HBs have been living off for years. Like sharks it is swim or suffocate time.
Labels: Calculated Risk