The new single-family home category posted its fourth consecutive month-to-month gain during September, rising 0.5 percent. However, homebuilding activity can, at best, be characterized as bouncing along the bottom.

Outside of the jump in spending created by the homebuyer tax credit, the level of new home construction has moved sideways for the past two years; held back by competition from distressed sales, tight lending standards and a still-weak labor market.

Other indicators, such as the NAHB Multifamily Housing Production Index and NMHC quarterly survey of apartment market conditions also point to appreciable gains in multifamily housing demand and production for over the near term.

Home improvement spending jumped 1.4 percent in September. Shorter-term readings in these data suggest a great deal of volatility in spending activity, but the longer-term trend suggests home remodeling activity has been flat over the past two years.

Results from NAHB Remodeling Market Index indicate the market for home improvement is being held back by the sluggish economic recovery and restrictive lending standards.

- Courtesy of NAHB