Since November, NAHB homebuilder sentiment has only beaten expectations once. May printed 54 (notably short of the 57 expectation). Despite all the previous hope for future sales, buyer traffic has fallen as The Midwest saw the biggest drop in sentiment (what about the post-weather bounce?) and The West rising modestly.
The story was well-known: pessimism now offset by optimism later: present single family sales falls to 59 vs 61 last month, while future single family sales rise to 64 vs 63 last month, even as prospective buyers traffic falls to 39 vs 40 last month.
As for the report punchline:
“Consumers are exhibiting caution, and want to be on more stable financial footing before purchasing a home,” said NAHB Chief Economist David Crowe.
Which may suggest that the S&P at all time highs hasn’t quite trickled down to consumers just yet. Oh well, a few more years of record S&P highs should surely seal the deal.
