Confidence Among U.S. Homebuilders Falls to Lowest in a Year
Source: Bloomberg
By Michelle Jamrisko May 15, 2014 10:00 AM ET
Confidence among U.S. homebuilders dropped in May to the lowest level in a year, showing the residential real estate market may be slow to recover after an unusually harsh winter.
The National Association of Home Builders/Wells Fargo builder sentiment gauge fell to 45 this month, the weakest since May 2013, from a revised 46 in April that was lower than initially reported, figures from the Washington-based group showed today. Readings less than 50 mean fewer respondents report good market conditions. The median forecast in a Bloomberg survey called for 49.
Still-tight credit conditions, limited availability of lots and falling affordability as home prices rise are probably preventing the residential real-estate market from gaining momentum as temperatures warm. Hiring gains may contribute to a pickup in housing demand and help offset some of the headwinds.
“Builder sentiment is becoming more in line with the market reality of a continuing but modest recovery,” NAHB Chairman Kevin Kelly, a homebuilder and developer from Wilmington, Delaware, said in a statement. “However, builders expressed some optimism that sales will pick up in the coming months.”
Read more: http://www.bloomberg.com/news/2014-05-15/confidence-among-u-s-homebuilders-falls-to-lowest-in-a-year.html
