Housing Data and Builders’ Optimism Improving – Signs of Good Post-Stimulus Market?
Last Friday, I commented about the turn up in homebuilders’ land purchases amid home price stability and improvement (“Homebuilders Buying Land Again – House Price Patterns Support the New Activity”). The current government stimulus program is scheduled to end on April 30. Will the indicators turn down again, or will we see a good spring and summer selling season?
Today, let’s look at the other indicators: House permits, starts and sales (new and existing). The story is consistent – stability and improvement. Homebuilders appear optimistic, buying land, getting permits and starting new construction. Here are the indicators updated through March 31:
Housing permits (for single unit homes)
Housing starts (for single unit homes)
Home sales – new houses
Home sales – existing houses
So… The sales indicators show improvement during the stimulus period, and the permits and starts (and land purchase) trends indicate growing homebuilder optimism for future sales beyond the April 30 stimulus cutoff date.
