From a small northwestern observatory…

I was just at a luncheon (sponsored by the local chapter of the Appraisal Institute) on apartments.  One of the speakers noted that a real problem in doing adequate analysis was getting a handle on the single-family housing market — the data simply stinks due to the foreclosure mess, the number of homes being turned into rentals, etc.  Thus, as we try to ALSO project the future of the homebuilding industry (really down for the count the last few years), that same dirty-data problem is a real issue.

That aside, the National Association of Homebuilders released a report today noting that the NAHB/Wells Fargo Housing Market Index rose in February for the fifth consecutive month.  As I discussed back in November (click here for a link) this index attempt to project home sales based on model home traffic, customer inquiries, and such.  Even though the over all stock market was down today, this news sent homebuilder prices higher — indeed, Beazer Homes (BZH) rose by 3.1%, albeit to just over $3/share.

NAHB’s Chief Economist David Crowe said, “this is the longest period of sustained improvement we have seen in the HMI since 2007.”  Great news for homebuilders — we hope it stays this way.  For a full copy of the article, on Fox Business News, click here.