NEW YORK, June 18 U.S. homebuilder sentiment
nudged upwards in June to its highest level in five years, the
National Association of Home Builders said on Monday.
The NAHB/Wells Fargo Housing Market index rose one point
from the month before to 29, in another sign that the housing
market may be slowly heading into recovery, and one point ahead
of the expectations of economists polled by Reuters. May's
reading was previously reported as 29.
The index, however, was still below 50, meaning more
builders view market conditions as poor than favorable. It has
not been above 50 since April 2006.
The single-family home sales component rose to 32 from 30 in
May, its highest level since April 2007. The gauge of
single-family sales expectations for the next six months held
steady at 34 from May, and prospective buyer traffic also
remained in place at 23.
"This month's modest updtick in builder confidence comes on
the heels of a four-point gain in May and is reflective of the
continued, gradual improvement we are seeing in many individual
housing markets as more buyers decide to take advantage of
today's low prices and interest rates," said NAHB chairman Barry
Rutenberg in a statement.
David Crowe, NAHB chief economist, said in a statement that
"overly tight lending conditions and inaccurate appraisals" are
hindering the completion of further sales.
Sentiment varied by region. The northeast and south
registered slight declines in June, down two points to 29 and
26, respectively. The west and midwest saw increases of 4 and 5
points, up to 33 and 31, respectively.
(Reporting by Anna Louie Sussman; Editing by Chizu Nomiyama)
Keywords: USA ECONOMY/HOUSING NAHB
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