Today's release of the NAHB Housing Sentiment index came in better than expected and (29 vs 26) currently sits at its highest level since May 2007. In this month's report all three subcomponents also showed increases, and are all at or just near their highest levels since 2007. On a regional basis, the West was the only area where homebuilder sentiment declined. In the Northeast, Midwest, and South, however, sentiment increased.
It is important to remember that even as the NAHB Index and its various subcomponents are hitting multi-year highs, they all remain below 50, which is the dividing line between positive and negative sentiment. Therefore, while sentiment is clearly getting less worse, there is a ways to go before we can say homebuilders are positive.
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