Builders’ sentiment in February fell three points to 55, according to the National Association of Home Builders. While the current number of 55 is still above the tipping point of 50 and is also three points higher than in February 2015, it is well below the recent apex of 65, which it reached in October 2015.
Part of the drop may be due to the concern of the consumer about how volatile the stock market has been recently, which means a calmer stock market will most likely lead to more people having the ability or confidence to purchase a home again.
On a positive note, the sub index of expectations for future sales rose on point in February, meaning builders are expecting a return of consumer confidence and, thus, a return of consumers themselves to the market.
PB Topical Ref
