Homebuilder sentiment took a sharp turn higher this month, rising from 64 up to 68 and well ahead of consensus expectations for a reading of 64. While the magnitude of the beat seems large, there have been three other reports in the last year where sentiment saw as big or a bigger improvement relative to expectations.
As shown in the table below, Present and Future Sales as well as Traffic all increased this month. Future Sales was a big standout to the upside, as it rebounded back to its highest level since 1999 (chart below).
On a regional basis, the only region of the country where sentiment declined was out West. Sentiment in the Northeast was unchanged, while sentiment in the Midwest and South saw big improvements. While overall sentiment was stronger this month, no single area or aspect of the report hit a new high for the cycle.
No Comments