The monthly report on homebuilder sentiment from the NAHB is always a favorite of ours because it provides one of the earliest reads of the health of the residential real estate market for the month that it is reported in. This morning’s report on sentiment for the month of November was unchanged at 63, which is right inline with expectations. This report was also notable given the fact that it was the third straight month where the overall reading was 63 or above, which hasn’t happened since 2005.
The table to the right breaks down this month’s report by category and region. As shown, there wasn’t much in the way of big moves. Present sales was unchanged, Future Sales dropped slightly, and Traffic saw a small increase. In terms of the regional breakdown, every region but the South increased with the largest gain coming out West. Below, we show the trends of sentiment for each region over time. While sentiment in the South and West has been moving sideways, we have been seeing strength in previously lagging regions like the Northeast and Midwest.