U.S.A home-builders are feeling slightly less confident in their sales forecast heading into next year (2015), even as their overall sales outlook remains favorable.
The National Association of Home builder sentiment index released Monday slipped this month to fifty seven, down one point from fifty eight in November. Readings above 50 indicate more builders view sales situation as good, rather than poor.
Builders view of present sales conditions and their outlook for sales over the next 6 months also declined slightly. A measure of traffic by potential buyers held steady. The index also found sentiment had improved in the West and Northeast, but took a step back in the Midwest and South, which accounts for half of the new-home market.
The most recent reading reflects a Housing Market that is slowly recovering, said, the NAHB's chief economist. As we head into 2015, the housing market continues to recover at a steady, gradual pace, aid, the NAHB's chief economist.
Home, while still an extensive way from the boom of several years ago, has been recovering over the past 2 years. New home sales reached a seasonally attuned annual rate of 458,000 homes in October, the maximum point since May. Still, sales remain piercingly below the yearly rate of 700,000 seen during the 1990s.
The median price of a home sold in October was $305,000, up 16.5% from a year ago. November data on new-home sales are due out next week.
The steady rise in home prices has held back many budding buyers, mainly first-time buyers. Many lack the savings and strong credit history needed to afford a home, causing them to rent in their existing homes instead of improvement. Tight credit and flat incomes also have limited the number of buyers who could afford a home.
Which was based on responses from 375 builders, the index gauge current sales conditions for single-family homes slipped one point to 61? Builders' outlook for sales over the next 6 months also fell, shedding one point to 65. A measure of traffic by potential buyers was unchanged from November at 45.
New homes represent only a fraction of the housing market; they have an outsize impact on the economy. All home built creates an average of three jobs for one year and generates about $90,000 in tax revenue, according to NAHB data.
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