U.S. home builders confidence slightly dropped in February
Washington, DC, United States (4E) – U.S. home builders confidence dropped in February after reaching six-year high, an indication that more time is needed for a sustained real-estate market rebound.
The builder confidence index by the National Association of Home Builders/Wells Fargo dropped one notch from the previous month to 46, according to a Washington-based group report released Tuesday. January’s 47 reading matched the highest level since April 2006.
This month’s home builders confidence performance is the first decline in the past 11 months. The index is now four points below the 50 mark that separates the positive and negative readings.
The measurement, which was first published in January 1985, averaged 54 in the five-year period leading to December 2007 when the recession began. In January, it fell to a record low level of 8.
Current sales conditions, which slid by one point to 51, remain as the only solid positive component of the three that make up the index. Buyer traffic continues to be the weakest, falling by four points to 32, while sales expectations over the next six-month period climbed by one point to 50.
The Northeast sub-index, which rose from 36 to 41, is one of the two regions that saw a rise in the home builders confidence. The reading in the West also increased to 60, the highest level since getting 59 in June 2006. Confidence in the Midwest stayed flat at 46 while the South fell from 51 to 44.