US NAHB: Real fundamental improvement in housing demand- Wells Fargo

Analysts from Wells Fargo, noted that the report from the National Association of Home builders, that climbed 2 point to 70, showed rising demand for new homes, hitting the second highest level of the cycle. 

Key Quotes: 

“With weather distortions now comfortably behind us, the strength we are seeing in home buying reflects a real fundamental improvement in housing demand. The present sales index rose 2 points to 76, while the future sales index jumped 4 points to 79, reaching its highest level June 2005.”

“Demand for single-family homes is being driven by stronger job growth and a rising supply of millennial buyers. Demand Is Strongest in the West and South.”

“Supply constraints remain a hurdle for builders. Shortages of lots and workers have kept starts below levels seen the last time the NAHB index was as high as it is today.”