Homebuilder Sentiment Moving Sideways

The latest builder confidence index has just been released by the National Association of Home Builders (NAHB).  The current January index is at 15, down from 16 in December and 17 in November, but up Y-O-Y from a dismal 8 in January 2009.  While we’re slightly better off than last year, keep in mind that during the residential construction boom, index levels were in the 70′s.  Any number lower than 50 indicates more builders view conditions as negative as compared to those who them as positive.  Bottom line: we detect some vital signs, but the market is still very much on life support.  Here’s the link to the published index:

http://www.nahb.org/generic.aspx?sectionID=134&genericContentID=529