Tuesday, March 20, 2012

Homebuilders Still in Neutral about Economy

U.S. homebuilder sentiment was unchanged in March to hold at the highest level since June 2007, while sentiment in February was revised lower, the National Association of Home Builders said on Monday.

The NAHB/Wells Fargo Housing Market index held steady at 28, the group said in a statement, shy of economists' expectations for 30.

Oh Well, It Could be Worse

After stagnating in a tight range, the index has gained 14 points since September 2011, reinforcing optimism the housing market is finding a bottom.  Even though most builders are in Neutral, at least it's better than being in Park.

Still, 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.

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