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NAHB: Homebuilder Confidence Highest in Six Years

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  • Description

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

  • Duration 3:56
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Well thank you very much.

We'll also in the -- -- looking at home -- confidence because it did rise in September for the consecutive month.

The national association -- homebuilders housing market index has been climbing constantly.

Through the summer -- a rating of 28 may -- today's September number.

A forty that's the highest level we've had six years an HP CEO Jerry Howard joins me now from costs.

Interview but Jerry -- begs the question at this point are we gonna say that's positive reading of fifty.

Before the end of the year.

Auto -- what it's grown up we're on a roll right now we're I'm pretty pleased with that I can tell you that.

One of the some components of the index which gauges builders' confidence six months out is -- fifty so we could well see it in time for the spring building season and we're pretty excited about it.

Let's talk about the ranges because of some very exempting still going -- -- with regards to regions yelled his summit housing has regional.

And the west got a 45 rigs are close to fifty there in the midwest you got a 45 ratings are close to fifty there -- -- -- on all the sub -- basis will we see.

These numbers take up -- the next month do you think.

I think we're gonna see the optimism of the builders is really in place I think it'll continue to grow.

And that's despite some of the headwinds that these guys are still face and in the marketplace.

Please you know you always talk about that up -- tight lending conditions tight standards but what we're saying.

On the small business side different area from -- but is that we're saying -- there's not but there's no demand for loans.

From that side are the builders really going on trying to get loans to develop this new properties or they basically going -- cash reserves.

They've been in they've been sitting on for the last few four years.

Are well if we some of the -- -- some of the bigger builders have some cash reserves but some of the smaller builders in the medium -- builders.

Particularly those in our improving markets and there's about a hundred metropolitan areas that are out improving right now in conditions where there right for building.

Those guys are gonna banks trying to get loans and they're still face an incredible difficulty.

80% year members.

Ours is we all of -- members -- present 80% of new housing in this country worsen -- huge rally for -- building.

Stocks they'd be -- -- members I'm curious say I know that you you talk to them all time.

If the pressure is on for these names and they were saying huge stock jumps.

Furlan our whole C&A ME -- -- -- under 16% of Lester.

-- see that stock is up 262.

Per cent over the last year Gerri do you think that there are a little nervous about the fact that that but the street's betting on them now.

I can't come on on the individual companies I can tell you that the industry as a whole is very very optimistic about the future and the fact it it appears that.

Virtually in most in most every market.

We're reaching the bottom and -- ready to start common -- so you can extrapolate that to whatever the individual companies -- second.

Well I -- the traders that are thinking -- looking at those stocks right up.

-- violated guide you what do talking about about traffic -- -- one thing that we saw last month when we spoke with the traffic can really increase that but traffic we're still saying.

A positive.

Number for foot traffic over fifty that is optimistic.

But still we're not seeing that translate truly into the sales of these guys need is at -- the disconnect here.

Well the disconnect is is that the buyers have been so cautious for so long that just to get them out looking at new homes is a step in the right direction.

Ultimately that will translate into more sales it might take time but again that points -- the optimism that our members are showing that they feel for the next six months.

All already up to fifty.

What about commodity costs I know that some builders -- concern out -- commodity costs.

You know that's a problem that I'd like to have -- commodity cost labor cost all of those issues are issues that show that were back in business and that we're starting to buy things again we're starting to contribute to the economy which by the way I would like President Obama and governor Romney to recognize.

While -- putting a lot of things -- their mind right now.

Jerry Howard the CEO of any -- Gerri thank you will see --

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