It's been a while since I've commented on the Home Builder Confidence index. The reason?
Nothing has changed.
The index clocked in at 14 for the month of September, down from 15 in August. Anything below 50 shows contraction or a negative outlook moving forward, meaning we are currently in a depression for the industry.
This is obviously good news for the housing market long term as new supply is completely unnecessary.
The long term chart, going back to 1985, courtesy of Calculated Risk: