If you want to know if new home starts are going higher, watch the active market listings.
Residential housing reported higher numbers for November today. What do homebuilders know about housing that surprised the stock market today?
Home prices are getting less bad:
How? Inventory is down. While the foreclosures are clogged somewhere in the pipeline, there’s just not much available for Joe & Sally Homebuyer:
The homebuilders see what we see – when sellers get more confident on pricing, builders pick up their new home construction. (Data measures at a 77% correlation):
Looking at quarterly data since 2007, there’s more of the same. (Data measures at a 76% correlation):