US Homebuilder Sentiment Slips In April
The National Association of Home Builders (NAHB) and Wells Fargo Housing Market on Monday released a new data showing a slight decline in the homebuilder sentiment in April as the prices of homes and widespread foreclosures in the United States continued.
A new data released by industry group on Monday showed a slight decline in the homebuilder sentiment in April as the prices of homes and widespread foreclosures in the United States continued.
In a survey, the National Association of Home Builders (NAHB) and Wells Fargo Housing Market said that homebuilders’ index dropped to 16 in April 2011 from 17 in the previous month – the fifth consecutive year that the sector expressed negative sentiments.
David Crowe, economist for NAHB, attributed the decline to the slow start for the sector this year following the low home sales in the country due to the recession.
“The spring home buying season is off to a slow start, mainly because of the persistent concerns on the value of the homes,” Crowe said.
He added that foreclosures in many part of the US has also contributed to the decline as the increasing restriction in the loans and lending requirements put more burden to the already embattled housing market.
Meanwhile, several economists said that the continued uncertainty among Americans due to high unemployment rate, as well as the slow economic recovery, should be blamed for the decline in the homebuilders’ index.
The homebuilders’ index is one of the key indicators in the condition of the US housing sector – a reading above 50 usually indicates positive outlook.
Since 2006, the index has not been above 50.