Lately, it seems that there hasn’t been a whole lot of positive data coming out of the residential housing sector, but this morning we actually received some good news for a change. According to the National Association of Homebuilders (NAHB), homebuilder sentiment for the month of October unexpectedly increased from 67 up to 68 versus estimates for a decline to 66. In spite of this month’s increase, the index is still off of its high of 74 that was hit right at the end of 2017 when the GOP tax plan was passed.
Breaking out this month’s report by sales, traffic, and regions shows gains across the board. As shown in the table below, Traffic saw a big surge rising from 49 back into positive territory at 53. From a regional perspective, sentiment improved in all four regions of the country, but for the second straight month, homebuilders in the Northeast saw the biggest boost to sentiment and it is the only region of the country where sentiment is at a high for the cycle. Finally, some good news out of the housing sector!