US Homebuilder Sentiment Up On Solid Demand

US Homebuilder Sentiment Up On Solid Demand

US Homebuilder Sentiment Up On Solid Demand

October’s pickup in sentiment across the 3 sub-indexes and all 4 regions indicates the market for newly-built homes

Confidence among America’s homebuilders unexpectedly rose in October, registering the 1st gainer in 5 months amid falling lumber prices and solid demand, according to a report Tuesday from the National Association of Home Builders/Wells Fargo.

Highlights of Homebuilder Sentiment (October)

Key Takeaways from the Report

October’s pickup in sentiment across the 3 sub-indexes and all 4 regions indicates the market for newly-built homes may be regaining steam after a broad cooling in housing in recent months.

Tailwinds from tax cuts and one of the strongest job markets in decades continue to elevate sentiments and boost demand. Lumber prices have also fallen almost 50% since reaching a record in May.

At the same time, affordability continues to present challenges, with rising home prices and borrowing costs, the report said. Data on housing starts and existing-home sales due this week are both projected to show declines in September from the prior month.

The Official View

“Favorable economic conditions and demographic tailwinds should continue to support demand, but housing affordability has become a challenge due to ongoing price and interest rate increases,” NAHB Chief Economist Robert Dietz said in a published statement. “Unless housing affordability stabilizes, the market risks losing additional momentum as we head into 2019.”

Some Other Details

  • Confidence gauge in Northeast climbed to a 13-year high of 64; reached 4-month high in West
  • Measures of sentiment rose 2 points each in the Midwest, South

Keeping America Great!

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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