If you were doubting the veracity of the recovery in housing, this morning's release of homebuilder sentiment for the month of July should help to ease those concerns. For the month of July, the NAHB Sentiment survey rose from 51 up to 57. Even more impressive is the fact that the homebuilder sentiment index has now risen by 13 points in the last two months. The last time the index saw that big a jump in a two month period was back in February 1992.
The table above summarizes each of the NAHB's components as well as a breakdown of sentiment by region. As shown, every component and region saw improvement in the month of July. Additionally, for most of these components, July's levels are also the highest since late 2005/early 2006. On a regional basis, the only area of the country where homebuilder sentiment is negative (below 50) is the Northeast at a level of 41. One reason sentiment in the region may be below 50 is due to the fact that this is also a region of the country where there is less available land for development.
The charts below show the historical levels each component of the NAHB sentiment index as well as historical sentiment by region: