U.S. Homebuilder Confidence Stagnates in February on Slow Sales

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Confidence among U.S. homebuilders stagnated in February, reflecting a still-depressed housing market.

The National Association of Home Builders/Wells Fargo sentiment index registered a reading of 16 for the fourth consecutive month, in line with the median forecast of economists surveyed by Bloomberg News, data from the Washington- based group showed today. Readings below 50 mean more respondents said conditions were poor.

Builders must compete with a glut of unsold properties depressing home prices as the number of foreclosure filings rises and unemployment holds above 9 percent, damping demand for new construction.

“While builders are starting to see more interest among potential home buyers, we are also dealing with a multitude of challenges, including competition from foreclosure properties and inaccurate appraisals of new homes, which are limiting our ability to sell,” said NAHB Chairman Bob Nielsen, a homebuilder from Reno, Nevada, in an e-mailed statement “On top of that, an extremely tight lending environment continues to make it almost impossible to obtain credit for viable new and existing projects.”

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