Builders outlook brightens
March 7, 2007,
Washington – Builder confidence rose sharply in February, spurred by a jump in January home sales – but that was before the nation’s home builders had a chance to read about a steep slide in February sales that erased all of the gain made the month before.
“Builders are becoming increasingly convinced that the abrupt downslide in home sales is in their rear view mirrors and they see better times as they look at the road ahead,” said David Seiders, NAHB chief economist. But two weeks after that rosy outlook, sales of new homes dived by more than 16% in February, likely setting the stage for a corresponding drop in the next reading of builder confidence, scheduled to be released in mid-March.
Still, said Seiders, builders were especially bullish about sales expectations for the next six months. There the index rose seven points and jumped over the threshold number of 50 for the first time since last June.