US homebuilder confidence sinks in February | Armonk NY Homes

 

U.S. homebuilders’ confidence in the housing market declined sharply this month as the severe weather battering much of the nation keeps many would-be buyers at home.

Storms and cold weather dampened builders’ outlook for sales ahead of the spring home-selling season and could further slow the pace of home construction.

The National Association of Home Builders/Wells Fargo builder sentiment index released Tuesday slid to 46. That’s down from January’s reading of 56 and is the lowest level since May.

Readings below 50 indicate that more builders view sales conditions as poor rather than good.

Builders’ view of current sales conditions for single-family homes, their outlook for sales over the next six months and traffic by prospective buyers have all declined since January.

The overall index had been above 50 since June, reflecting a strengthening housing market. The latest reading complicates the outlook for sales just as the annual spring buying season ramps up. Typically, the spring season sets the pattern for residential hiring and construction in the ensuing months.

Sales of new homes jumped 16.4 percent last year to 428,000, the highest level in five years. Sales typically slow in November and December. But this winter’s onslaught of snowfall and freezing temperatures has exacerbated the seasonal slowdown. Economists predict that sales of new homes fell for the third month in a row in January.

 

http://finance.yahoo.com/news/us-homebuilder-confidence-sinks-february-150048616–finance.html