Home builder sentiment cools in April: NAHB

NEW YORK Mon Apr 16, 2012 10:24am EDT

Construction worker Trent Gardner carries a column to be installed on a new home in Matthews, North Carolina April 15, 2010. REUTERS/Chris Keane

Construction worker Trent Gardner carries a column to be installed on a new home in Matthews, North Carolina April 15, 2010.

Credit: Reuters/Chris Keane

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NEW YORK (Reuters) - Homebuilder sentiment ebbed in April for the first time in seven months as prospective buyers remained hesitant to pull the trigger, the National Association of Home Builders said on Monday.

The NAHB/Wells Fargo Housing Market index slipped to 25 from 28 in March, shy of economists' expectations for the index to hold steady at 28.

Still, the index has gained 11 points since September 2011, reinforcing optimism the housing market is finding a bottom.

The index has a long way to go to the 50 mark that indicates more builders view market conditions as favorable than poor. The index has not been above 50 since April 2006.

"What we're seeing is essentially a pause in what had been a fairly rapid build-up in builder confidence that started last September," NAHB chief economist David Crowe said in a statement.

"This is partly because interest expressed by buyers in the past few months has yet to translate into expected sales activity, but is also reflective of the ongoing challenges that are slowing the housing recovery - particularly tight credit conditions for builders and buyers, competition from foreclosures and problems with obtaining accurate appraisals."

The single-family home sales component fell to 26 from 29. The gauge of single-family sales expectations for the next six months eased to 32 from 35, while prospective buyer traffic waned to 18 from 22.

(Reporting By Leah Schnurr; Editing by Chizu Nomiyama)

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Comments (2)
geesam47 wrote:
Monthly housing sales are irrelevant. One month it goes up and the next month it goes down. Enough already. How about just quarterly housing reports.

Apr 16, 2012 10:46am EDT  --  Report as abuse
brotherkenny4 wrote:
How about we get the local governments out of the permiting business and allow individuals to build their own homes again. Pretending to be about safety and the environment, the local zoning laws everywhere have been designed to limit who can build. Sure they’ll say that is not true, you can build your own home, but only with their permission and only with approved designs, and with numerous inspections. You see they have set up the system to take away your ability to earn through your labor. It’s all designed to make you debt slaves. If they were really about giving you an opportinuty to acheive your dream the information on the process, as well as the codes themselves would be readily available and written in language that everyone can understand. No, it’s information assymetry. They keep you ignorant and poor and working for them and their rich buddies.

On another note. How many houses are needed? I see empty houses everywhere.

Apr 16, 2012 12:43pm EDT  --  Report as abuse
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