Good news for those in builder market?
Here's a story about a National Association of Home Builders study that shows that builders' confidence is increasing, and that we may have finally seen the bottom of the housing crisis.
The NAHB-Wells Fargo index rose to 16 in May from 14 in April on a scale of zero to 100. It's the highest since the 17 recorded in September. The index got as low as 6 in January. Before the current housing meltdown, the index had never gotten below 20 in its 24-year history. It peaked at 72 nearly four years ago.The industry trade group received 733 responses to its survey in May. The story says that the index matched economists' expectations. According to John Ryding and Conrad DeQuadros of RDQ Economics.
"This is one more piece of data that suggests the recession's grip in the economy is beginning to loosen."The story says that tomorrow the Commerce Department releases its estimates for housing starts and building permits in April.
Over time, the NAHB index and housing starts are highly correlated. Starts are down 48% in the past year and down 72% from the peak. Economists are forecasting a slight increase in starts to a 519,000 seasonally adjusted annual rate from 510,000 in March.