Recently published data concerning housing and the broader economy reveal good news for the home building industry.

The NAHB/Wells Fargo Housing Market Index, a measure of builder confidence, reached 29 in February. This was the fifth consecutive monthly increase and the highest level for the index since April 2007.

Housing starts in January were up 1.5% from the previous month, reaching a 690,000 annualized pace. New single-family home sales were also up in January, which at a 321,000 seasonally-adjusted annualized rate, neared levels last seen in April 2010 at the end of the home buyer tax credit program. Existing home sales were also up (4.3%) in January.

These positive trends are the result of a healing national economy and improving conditions for housing markets. For example, the NAHB/Wells Fargo Housing Opportunity Index reached the highest level in its 20-year history in January.

These improving conditions were also reflected in the February National Association of Realtors Pending Home Sales Index, which was up 8% from a year ago. And house prices are finding stable ground, with the Federal Housing Finance Agency national house price index up nearly 2% from its lowest level in March 2011 and most Census regions showing gains.

The Case-Shiller national home price index fell somewhat, but there is considerable local variation among the metropolitan areas in that measure.

Data from the Mortgage Bankers Association shows a slowing starts rate for foreclosures, although some of that slowing may be due to judicial and administrative delays for distressed homes in late 2011.

And more broadly, consumers are gaining confidence with respect to their own economic status and their views of the labor market.

Despite these positives, a few dark clouds remain: lending for home building remains overly restrictive, and some producer prices, including gypsum, appear to be on the rise.

Other analysis appearing on NAHB’s Eye on Housing economics blog this month included:

• Profiles of Lincoln, Neb. and Cincinnati, Ohio, cities appearing on the NAHB/First American Improving Market Index, which now includes 98 metropolitan areas.
• A look at the average builders’ finances in 2010, including revenue and costs.
• Analysis of trends in newly constructed homes in 2011, including home size and other characteristics.

Read more in the following posts from Eye on Housing.

The February measure of consumer confidence rises, with the survey reporting that consumers who think that jobs are “hard to get” fell to a level last seen in November 2008.

A look at the latest Case-Shiller data, with a focus on the differences among metropolitan areas – analysis often neglected in the press.

Lending for home building purposes continues to decline, even as housing demand begins to grow.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed, was up 8% in January compared to the same period one year ago.

The national FHFA index shows house prices up 0.7% in December over November, and up 1.8% from a March 2011 trough. Among the nine Census divisions, six are up an average of 1.2% in December over November, and eight are up an average of 2.8% since their early 2011 troughs.

New home sales annual rate topped 321,000 in January 2012, and except for December’s revised figure of 324,000, this is the highest level since the end of the home buyer tax credit in April 2010.

Existing home sales increased 4.3% in January to a seasonally adjusted level of 4.57 million units. At the current sales level, total inventory represents a 6.1 month supply, down from a 6.4 month supply in December. 

Reporting the average NAHB home builder’s financial status for 2010.

The CPI’s measure of housing costs, the shelter index, expanded 0.2% in January, roughly the same rate of month-to-month growth it has registered in each of the last eight months.

The PPI for residential construction moved up a modest 0.6% in January with help from soft lumber prices (0.2% increase), and in spite of large increases in cement (2.8%) and gypsum (5.9%).

The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) rose to 75.9 during the fourth quarter of 2011, the highest number recorded in the 20-year history of the index. 

According to data from the Mortgage Bankers Association, the share of loans entering the foreclosure process during the final three months of the year slipped to 0.99%, marking only the second time in the past four years the foreclosure starts rate fell below 1%.

An analysis detailing why the Cincinnati housing market is on the NAHB/First American Improving Market list.

January housing starts increased 1.5% to 699,000 on a seasonally adjusted annual basis. However, substantial revisions for December and November suggest increased levels of building at the end of 2011.

NAHB’s chief economist explains what you need to know about the January housing starts numbers.

The Census Bureau’s preliminary estimate for starts in buildings with five or more units in January was up 14% from the revised rate for December. 

The NAHB/Wells Fargo Housing Market Index (HMI) increased four points in February to 29, the highest level since April 2007 and the fifth consecutive monthly increase.

This NAHB analysis examines the size and other characteristics of new homes constructed in 2011. The post also explains these trends took hold.