Photo: Iduke, Wikimedia Commons
We’ve been talking quietly about the homebuilders lately.This industry had been basically left for dead, but eventually household formation grows, and so on.
The XHB homebuilder ETF has had a nice several weeks, coming far off recent lows, and now, some actual improvement in homebuilder sentiment.
Here’s Goldman’s take on today’s number:
The index of homebuilder sentiment rose to 20 in November, up from a revised 17 in October. This timely measure of building conditions has generally been moving higher in recent months, but it remains within its post-recession range (it reached a post-recession high of 22 in May 2010). We would need to see further gains in builder sentiment before concluding a better trend in housing activity. All of the components of the index (current and expected sales, and prospective buyer traffic) improved during the month. The index of builder sentiment for the Midwest region has increased more sharply, and now stands at its highest level since March 2007.