US Home Builders Increasingly Optimistic

US Home Builders Increasingly Optimistic by Topdown Charts

The US NAHB index (measure of home builders confidence) jumped to almost a 12 month high in September as home builders become increasingly optimistic on the US housing market. But is this optimism justified? And what are the implications?

1. NAHB index vs house prices

The chart shows home builders are the most optimistic they’ve been on the outlook since around pre-GFC times.  This is coming on the back of the worst housing market downturn in recent history. In the release, NAHB said: “As household incomes rise, builders in many markets across the nation are reporting they are seeing more serious buyers, a positive sign that the housing market continues to...