INDONESIA

You are probably underestimating the economic momentum in US housing

America’s homebuilders see good things on the horizon.

A key gauge of homebuilder sentiment surged in September to its highest level since November of 2005.

National-Association-of-Home-Builders-confidence-measure-National-Association-of-Home-Builders-confidence-measure_chartbuilder

Elsewhere, Lennar Corp., a large US homebuilder, reported a much-better-than-expected quarterly profit of $178 million Wednesday, as prices and new orders for homes rose.

Lennar-fiscal-quarter-profit-Lennar-fiscal-quarter-profit_chartbuilder

And that’s a pretty marked improvement over the company—and the industry’s—performance in recent years.

Lennar-quarterly-profit-Lennar-quarterly-profit_chartbuilder

Optimism seems to be seeping into the stock market. Today, Lennar and other stocks tied to the homebuilding industry—such as Home Depot—are outpacing the broader market.

Share-price-change-over-the-last-six-months-S-P-500-Lennar-Home-Depot-S-P-homebuilders-index_chartbuilder

And that suggests that investors expect the recent pickup in new home sales to keep rolling forward.

New-home-sales-year-on-year-change-New-home-sales-year-on-year-change_chartbuilder (2)

 

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