· The
Composite Housing Market Index from the National Association of Home
Builders' (NAHB) remained unchanged m/m in December at the lowest level
since early 1991. The index was 49% below the high this past February.
· In December, the index fell sharply m/m in the Northeast (-48.6% y/y, was unchanged out West (-43.8% y/y) and rose in the South (-46.2 y/y and in the Midwest (-31.8% y/y).
· During the last twenty years there
has been a 76% correlation between the y/y change in the Composite Index
and the change in single family housing starts.
· The sub-index from the NAHB for current sales improved 5.6% in
December but remained down 76% from the 2004 high.
· The sub-index covering prospective sales in the next six months ticked up slightly m/m but also remained two thirds lower than the 2005 peak.
· Traffic of prospective home buyers virtually dried up and fell 17.6% m/m, down three quarters 2005 high.
· The NAHB index is a diffusion index
based on a survey of builders. Readings above 50 signal that more
builders view conditions good than poor.
· Visit the National Association of Home
Builders.