Looking at regional composite scores, the West, which is a favorite for home builders, is out in front at 70 followed by the South at 64. The Midwest is also positive at 56 while the Northeast, already fully developed, is far back as usual at 39.
Improvement in traffic is a big plus in this report, hinting at a new source of acceleration for home builders. The new home market has been solid but has been held back by lack of first-time buyers as well as constraints in the construction sector that are limiting new building.
Recent History Of This Indicator:
The housing market index has come in unchanged at 58 for four months in a row but a fifth such result is not expected for June where forecasters are calling for a 1 point gain to 59. Though flat month-to-month, the index has been well over breakeven 50 this year to indicate a healthy though non-accelerating rate of growth. Both current sales and future sales have been trending in the mid to low 60s with traffic, held down by lack of first-time buyers, sharply depressed in the mid to low 40s.
The housing market index has come in unchanged at 58 for four months in a row but a fifth such result is not expected for June where forecasters are calling for a 1 point gain to 59. Though flat month-to-month, the index has been well over breakeven 50 this year to indicate a healthy though non-accelerating rate of growth. Both current sales and future sales have been trending in the mid to low 60s with traffic, held down by lack of first-time buyers, sharply depressed in the mid to low 40s.
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