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You are probably underestimating the economic momentum in US housing

In this Thursday, July 17, 2014 photo construction workers build a commercial complex in Springfield, Ill. The state jobless rate has dropped for four straight months and is at its lowest point since October 2008. Illinois has lagged the country as a whole in its recovery from recession, and the state's unemployment rate has been among the worst in the country for months. Thursday's report provides signs that Illinois may be starting to catch up. Construction companies added 3,500 jobs in June, an increase of 1.8 percent. (AP Photo/Seth Perlman)
AP Photo/Seth Perlman
It’s all starting to come together.
This article is more than 2 years old.

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.

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.

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

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.

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

 

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