Your Economy (No Politics)

[Bullwinkle]

U.S. April home builders index fall to 4-1/2 year low
Monday, April 17, 2006 5:15:45 PM
http://www.afxpress.com


WASHINGTON (AFX) - U.S. home builders are just as likely to say the construction market is "poor" as they are to say it's "good." The U.S. housing market index fell by four points to 50 in April, the lowest level since the recession ended in November 2001, the National Association of Home Builders said Monday. The index was at 67 a year ago

A reading of 50 indicates builders' views about the market were evenly balanced between good and bad. The survey shows builders are somewhat optimistic about the current sales climate and about sales in the next six months. But the traffic of prospective buyers at developments is not hopeful

Views of builders in the West and South, the hottest regions for new construction, remain positive. In the West, the home builders index rose to 70 from 66 in March. The index sits at 55 in the South, 49 in the Northeast and 32 in the Midwest

The survey comes a day before the Commerce Department reports on new home construction for March. Economists see housing starts falling about 4% to a seasonally adjusted annual rate of 2.04 million in March after they sank 8% in February from a 33-year high in January

In April, the index for current sales of single-family homes fell from 59 to 54, the lowest since November 2001. The index for future sales of single-family homes fell from 62 to 58, also the lowest since November 2001

The index for traffic of prospective buyers fell from 40 to 39, the lowest since March 2003

The numbers "are neither surprising nor alarming," said David Seiders, chief economist for the builders' industry group. A reduction in speculative buying "is a positive development," he said. "Furthermore, we expect solid growth in employment and household income to essentially offset the minor increases" in mortgage rates projected this year

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