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Confidence Returns to Housing Market

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  • Description

    NAHB CEO Jerry Howard weighs in on the state of the housing market.

  • Duration 3:20
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-- call -- it thank you very much but an expected.

Home builder confidence in the market for new homes.

It at its highest level and more than five years since March 2007.

That it is that you move for the meltdown national association of homebuilders housing market index jumped to seven points from 29 June.

To 35 in July that has the largest month over month point jump in nearly a decade since September 02 and a physics who's up.

And HP's CEO Jerry Howard joins us now.

Gerri thanks for being let us.

Is this a case of a true rebound or is this like the old blues singer Walter Lewis who -- I've been down so long it looks like up to me.

Well I think is probably a combination of the two I mean you have to get to 35 if we can get to fifty -- -- so.

This kind of -- jump is is pretty significant and the reason I think that it may be based in -- true rebound is if you look at the other types of statistics that are coming out.

Our own improving markets index.

Has now eighty some metropolitan areas that show improving signs the federal government's numbers on new home sales on new home starts -- permits.

Are all showing signs of stability and increase I think we have the beginnings of a recovery here and we are.

Cautiously optimistic but I think now maybe more optimistic -- cautious.

-- billionaire Paul Allen told -- of the day he was.

-- -- -- hopefully pessimistic another way to to look at that are homebuilders generally.

So can do that they're always out there ahead of the curve and too confident too soon.

Or are they behind the curve and the fact that they're confident now actually speaks even better things for home sales and home building.

Well I think to go back to your blues phrase they've been down so long that our guys are really looking to get back into the market as soon as they can.

What's -- what's been holding them back a lot.

There's been accessed to credit and you are seen some loosening in some markets of credit availability and I think that that's helping to fuel this recovery.

Put homebuilders are by nature an optimistic group of people they're small business people that really want -- -- get out there and get the job done when they can and I think we're start to see that opportunity.

Did when you look at this builder confidence up in all regions.

It's especially where that meltdowns been worked -- the -- is up more right having the west is up twelve point significantly more than in the midwest up only three points.

And hadn't been down as far in the midwest is it had been in the west stuff he seems sort of an equilibrium starting to be regained in the markets just about everywhere.

And what are the reasons here are beyond just the fact that there's looser credit are they actually the homebuilders actually seeing people buy more as yet because I haven't seen that -- all on the data.

Let's have -- you are starting to see an increase in new home sales and increasing existing home sales what you started to see is that pent up demand -- has been locked in place for the last several years is finally starting to break out.

What I think is it is perhaps the most interesting though.

Is if you look at this holistic we from the whole economy for the first time in this recession.

We see what is a classic situation.

There usually is is of a pretense.

For the beginning of a recovery and that is this.

While the other economic numbers are -- for the first time the housing numbers are good.

And that has been sort of the presage for every recovery in every recession since World War II another reason for optimism.

While you're -- for the first time since that horrible thing began that the great way to -- it thank you very much Jerry Howard.

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