Monday, May 18, 2009

Homebuilder Blues: NAHB/Wells Fargo Home Builder Ratings May 2009

Today, the National Association of Home Builders (NAHB) released their latest Housing Market Index (HMI) showing an increase to the overall index as well as most component indices.

It’s important to recognize that although the series are seasonally adjusted, each series has generally shown notable strength or noticeable flattening during the first quarter of each of the last 4 years.

The new home market will likely not resume any significant form of healthy function until the considerable overhang of inventory is cleared.

Each component of the NAHB housing market index remains WELL BELOW the worst levels ever seen in the over 20 years and continues to remain firmly in uncharted territory.