Homebuilder Sentiment Is Decoupling From Reality

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Tuesday, Sept 17, 2013 Homebuilder Sentiment Is Decoupling From Reality  The NAHB's measure of homebuilder confidence was unchanged at 58 in September , the highest level since November 2005. Homebuilder confidence used to be considered a good leading indicator for housing starts. But in recent months  confidence has gained momentum while housing starts have failed to keep up. Paul Diggle at Capital Economics has previously explained that "the NAHB index has a habit of over-exuberance during rebounds." This he said is because of the way the housing market index (HMI), the gauge for homebuilder confidence, is constructed. "If all survey participants thought that conditions were ‘good’, even if only marginally so, the index would report a value of 100. But that extremely strong reading would not be a great reflection of actual market conditions." Here's an updated chart from Calculated Risk. We highlighted two previous instances when homebuilder confidence decoupled from housing starts. Read » Also On Markets Today: GOLDMAN: Here Are 24 Stocks That Hedge Funds Are Shorting Like Crazy Brazilian Currency Surges After Central Bank Launches Intervention Program To Stop The Bleeding Advertisement CHART OF THE DAY: China's GDP Numbers Look Almost Too 'Smooth' To Be True CHART OF THE DAY: The Chinese Premier's 2 Favorite Economic Indicators Look Super Depressing CHART OF THE DAY: Here's What It Looks Like When The Bond Market Goes Into A Coma Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Markets RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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