Home builder sentiment index logs sharpest drop ever
Published: Tuesday, 18 Feb 2014 | 10:00 AM ET
By: Diana Olick | CNBC Real Estate Reporter
Sentiment among the nation’s home builders fell dramatically in February, and while builders blame much of it on the weather, that is not the whole picture. Confidence fell 10 points, according to the National Association of Home Builders’ monthly sentiment index, from 56 to 46—the largest drop in the history of the survey, which started in 1985.
Fifty is the line between positive and negative sentiment. The index has not been below 50 since May.
“Significant weather conditions across most of the country led to a decline in buyer traffic last month,” said the association’s chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “Builders also have additional concerns about meeting ongoing and future demand due to a shortage of lots and labor.”