Where we predicted strong builder sentiment, strong home sales, and weak starts (three for the price of one)!
The American public once again refused to take its cue from the doom and gloom on TV’s finance shows and, instead of running for cover, bought homes at a faster pace than they could be built, residential builders say.
August home demand was quite torrid for what is typically a slow month, but labor and materials constraints did keep (starts) numbers artificially depressed in some of the more heated markets.
With supply down and demand strong, home prices are on the rise again – with builders at the very least recouping their increased construction costs...
Despite all the problems of the world that obsess economists and market insiders, builder sentiment remains strong and the ramp up for next year has already begun. -- (August 2015 starts and new home sales.)