Builder Confidence is Up! Housing Construction Down? What?

by | May 19, 2009 | Headline News

Inquiring minds are following recent real estate market reports and surveys — and trying to figure out what the h%ll is going on!?

Yesterday May 18 saw a huge boost in the Dow Jones and S&P 500 after the National Association of Home Builders / Wells Fargo Housing Market Index (HMI) showed that home builder confidence levels were up for a second consecutive month — the highest level in 8 months.

Builders are responding to what they perceive to be some of the best home buying conditions of a lifetime.

The fact that the May HMI continued to tick up from April’s five-point increase provides confirming evidence that the improved confidence level was no fluke.

Yes, these may be some of the best home buying conditions of a lifetime, but it is important to note that people are not necessarily buying NEW homes. There is a surplus of homes on the market, including foreclosures and what some refer to as “shadow real estate” which is not even on the books yet.

housing_inventory

It only makes sense that if builder sentiment is the highest it has been in the last 8 months, that we should be seeing more housing starts and construction. It’s curious, then, to learn today that we are seeing a contraction in housing starts, in fact, a record LOW with builders breaking ground on the fewest homes in April, with a drop of 12.8% month-over-month.

Green shoots are everywhere, it seems.

Inflation is Running at 40-Year Highs!

Negative interest rates are taxing savers, creating food shortages, and making life miserable in the United States!

There's little time left before the REAL DISASTER occurs!

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