OilFinder2 wrote:Homebuilder Confidence in U.S. Climbs to Five-Year High in May
Confidence among U.S. homebuilders jumped more than forecast in May, reaching a five-year high that signals an improving outlook for construction.
The National Association of Home Builders/Wells Fargo index of builder confidence rose to 29, the highest since May 2007, a report from the Washington-based group showed today. The gauge exceeded the highest projection in a Bloomberg News survey in which the median estimate was 26. Readings below 50 mean more respondents said conditions were poor.
Companies such as building products maker Ply Gem Holdings Inc. are benefiting as cheaper homes and mortgage rates at a record low combine to boost demand. At the same time, foreclosures remain a hurdle for new construction and property values, one reason a rebound in real estate is taking time to develop three years after the end of the recession.
“We have resumed the gradual upward trend in confidence that started at the beginning of this year,” Barry Rutenberg, chairman of the National Association of Home Builders and a builder from Gainesville, Florida, said in a statement. This comes “as stabilizing prices and excellent affordability encourage more people to pursue a new-home purchase.”
Today’s report showed gains in measures of current single- family home sales, the outlook for the next six months and buyer traffic.
Keyword here is "Confidence"
Homebuilder Confidence Rises To 5 Year High As Actual Sales Remain Near All Time Lows
America may not sell many new homes (read - sales are near or at all time lows), but that does not prevent homebuilders from having a dream, or in this case confidence that soon, soon, SOON, things will finally improve. Sure enough, in May the NAHB homebuilder confidence soared to 29, from 24, on expectations of a 26 print. Of course, these numbers are completely meaningless, and only serve to get the algos ramping momentum in an upward direction. In the meantime, the reality of actual sales, can be seen on the chart below
As opposed to "Reality"