Here's The Housing Comeback Story That Has People On Wall Street Downright Giddy

Everyone is talking about housing this morning. The tone from folks on Wall Street is downright giddy.

Here are the key points that form the bullish housing constellation:

Housing starts hit a much better-than-expected level of 894K, defying expectations of a monthly decline.

— Note only was the number strong, but year-over-year growth is accelerating incredibly. Check out the right column on this table, which was sent to us by  trader.  The year-over-year growth rate has gone from 19% to 30% to 33% to 42%.


— This is consistent with a surge in homebuilder sentiment, which rose to its highest level since 2006 yesterday.

— That surge in homebuilder sentiment foreshadows a nice rise in housing’s positive contribution to GDP.

— In fact, Deutsche Bank’s Joe LaVorgna thinks it’s possible that housing could start adding a whole percentage point of growth per quarter to GDP!

— And the gains are expected to continue for a while. Goldman Sachs sees a strong demographic force — more household formation — providing a floor for new homes built over the next few years.

— And the good news isn’t just based on new homes.

— Existing home sales blew past expectations yesterday.

— And months supply of houses available is vanishing, which is great news for people trying to sell their homes.

Bottom line: More homes are being built and bought, and the tailwind for GDP is setting up to be strong.

SEE ALSO: Why everyone trying to sell their homes should be thrilled >

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