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American Enterprise Institute's Ed Pinto weighs in on the state of the housing market.
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I come back -- let's talk about these housing numbers US home builder confidence rising highest level we've seen -- six years the number just in this morning and more signs may be that housing is finally.
Finally getting its act together and getting things turned around.
And -- resident fellow at the American Enterprise Institute with us now from DC is that what it says that are now.
I think so -- -- and this is another indicator that debt housing is this coming back it's it's a slow recovery it's been -- delayed recovery.
But it's coming back got the home builder numbers.
-- an indication of that.
The fundamentals for housing.
-- the price ratios which are of -- fundamental indicator affordability.
And house prices are starting to rise in.
In nominal dollars there pretty still flattened real dollars those are all indicators of -- -- and this reading not to get caught up in the actual numbers of forty has nothing to go crazy about it -- fifty to be an expansion.
But it's up and that's the points getting there is getting closer to fifty but I want to show you a chart there were bringing up right now home builder sentiment was talking about today.
Vs new home sales.
And the Blue Line is the new home sales the yellow line is the home -- said that NBC at the end of the chart quite a disconnect -- -- -- really started to shoot up.
All the new home sales may be putting a bottom -- but is that a bullish sign that -- the sentiment will be a leading indicator for the new home sales.
Back I think so -- sentiment is where have to start.
Did the the real reality is that we haven't had a need for a tremendous amount of new home construction because we've had such an overhang in the market.
And in fact we didn't want to have but huge increase we'd be building homes for people that.
We really don't you -- need that production for doing it just to create jobs.
I think you want to have the fundamentals in place.
And which really leads -- the key question which is jobs that we still have.
A sub par recovery that feels like we haven't even had a recovery I was gonna say that -- to come next yeah I was gonna say before I let you go -- that you know for all this talk about yeah that's pretty good -- things to get turned around you don't sound that excited about it when you stop life.
-- you you know you're you're very cautious in at least in your town so.
The jobs number.
You know for August for horrible yeah and if that continues at those levels that you cannot have.
A housing recovery without jobs have been saying this for sometime its jobs that creates demand for housing.
Not housing that creates jobs that we've we've got to focus on the jobs alright but good analysis always had --
