By Dees Stribling | MHN Online
Homebuilder confidence in the market for newly built, single-family homes posted an unusually large 10-point drop to 46 in February compared with January, according to the National Association of Home Builders/Wells Fargo Housing Market Index, which was released on Tuesday. The NAHB cited unusually severe weather conditions across much of the nation as one reason, but that’s not all. Builders are also vexed by concerns over the cost and availability of labor and lots.
All three of the major index components declined in February. The component gauging current sales conditions fell 11 points to 51 – just barely remaining optimistic, since the threshold is 50. The component reflecting sales expectations in the next six months declined six points to 54, while the component measuring buyer traffic, which probably has the strongest correlation to lousy weather, dropped nine points to 31.
