U.S. homebuilders’ outlook holds near 4-year high

Homebuilders’ feelings about the current housing market haven’t changed from a month ago, according to the builder sentiment index by the National Association of Home Builders and Wells Fargo. The index remains unchanged at 28 this month—the highest level since June 2007; but NAHB and Wells Fargo note many builders are growing more optimistic that sales could pick up in the coming months. The flat reading followed five straight monthly increases. Builders say they are more hopeful about sales growth over the next six months. A separate gauge measuring that outlook rose for the sixth straight month, from 34 to 36. Even with more optimism, the industry has a long way to go. Any reading below 50 indicates negative sentiment about the housing market. The index hasn’t reached 50 since April 2006, the peak of the housing boom. Regionally, the home builder sentiment gained five points to 25 in the Northeast, two points to 32 in the Midwest, and two points to 27 in the South, while falling 10 points in the West following a 22-point gain in the previous month. “Builder confidence is now twice as strong as it was six months ago, and the West was the only region to experience a decline this month following an unusual spike in February,” reads a statement from NAHB Chief Economist David Crowe. “That said, many of our members continue to cite obstacles on the road to recovery, including persistently tight builder and buyer credit and the ongoing inventory of distressed properties in some markets.”