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US Homebuilder Sentiment Soars To 20 Year Highs, There's Just 2 Problems...
12-16-2019, 11:27 AM,
#1
US Homebuilder Sentiment Soars To 20 Year Highs, There's Just 2 Problems...
US Homebuilder Sentiment Soars To 20 Year Highs, There's Just 2 Problems...

<span property="schema:name" class="field field--name-title field--type-string field--label-hidden">US Homebuilder Sentiment Soars To 20 Year Highs, There's Just 2 Problems...</span>

<div property="schema:text" class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>As Upton Sinclair is believed to have said,</p>

<blockquote>
<p><strong><em>“It is difficult to get a man to understand something, when his salary depends on his not understanding it.”</em></strong></p>
</blockquote>

<p>And today's almost record-breaking surge in homebuilder sentiment (to its highest since June 1999) perhaps highlights Sinclair's comment best of all...</p>

<p><strong>New Home Sales are still 47% below their peak in 2005 </strong>and the <strong>buying climate for homes (based on UMich's sentiment survey) has collapsed to its weakest since 2008</strong> (all despite mortgage rates at or near record lows)</p>

<p><a data-image-external-href="" data-image-href="/s3/files/inline-images/bfm19F.jpg?itok=0eV1GIaZ" data-link-option="0" href="https://www.zerohedge.com/s3/files/inline-images/bfm19F.jpg?itok=0eV1GIaZ"><picture><!--[if IE 9]><video style="display: none;"><![endif]--><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/bfm19F.jpg?itok=kgCvqTqr 1x" media="all and (min-width: 1280px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/bfm19F.jpg?itok=kgCvqTqr 1x" media="all and (min-width: 480px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/bfm19F.jpg?itok=kgCvqTqr 1x, https://zh-prod-1cc738ca-7d3b-4a72-b792-...k=kgCvqTqr 2x" media="all and (min-width: 1024px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/bfm19F.jpg?itok=kgCvqTqr 1x" media="all and (min-width: 768px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_mobile/public/inline-images/bfm19F.jpg?itok=0eV1GIaZ 1x" type="image/jpeg"></source><!--[if IE 9]></video><![endif]--><img data-entity-type="file" data-entity-uuid="cbd44f50-3716-478a-a0d7-60888a08c985" data-responsive-image-style="inline_images" height="260" width="500" src="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/bfm19F.jpg" alt="" typeof="foaf:Image" /></picture></a></p>

<p><em>Source: Bloomberg</em></p>

<p>The National Association of Home Builders/Wells Fargo Housing Market Index jumped 5 points to 76, the biggest monthly increase since the end of 2017, and the November figure was revised higher.</p>

<ul><li>
<p>The NAHB’s gauge of the<strong> traffic of prospective buyers climbed 4 points to 58, matching the highest level since 1998.</strong></p>
</li>
<li>
<p>The index of <strong>current sales surged by 7 points to 84, the best reading since 1999</strong>.</p>
</li>
</ul><p>The December reading caps a 20-point gain for the index this year, the biggest since 2012.</p>

<blockquote>
<p>“While we are seeing near-term positive market conditions with a 50-year low for the unemployment rate and increased wage growth, <strong>we are still underbuilding due to supply-side constraints like labor and land availability</strong>,” Robert Dietz, NAHB’s chief economist, said in a statement.</p>

<p>“<strong>Higher development costs are hurting affordability</strong>.”</p>
</blockquote>

<p>Will new home sales, construction, and buying climate ever catch up to the optimism of those who make their livings based on all of this magical thinking?</p>

<p> </p>
</div>
<span rel="schema:author" class="field field--name-uid field--type-entity-reference field--label-hidden">
<a href="https://www.zerohedge.com/users/tyler-durden">Tyler Durden</a>
</span>
<span property="schema:dateCreated" content="2019-12-16T15:25:42+00:00" class="field field--name-created field--type-created field--label-hidden">Mon, 12/16/2019 - 10:25</span>

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