Homebuilders in the U.S. grew more confident in the third month of the year as sentiment reached the highest level in 10 months of an outlook for stronger sales in the coming months, according to Bloomberg. On Tuesday, the National Association of Home Builders and Wells Fargo reported that the sentiment index for U.S. homebuilders rose to 17 in March from 16 previously, which marks the highest level since May 2010. The improvement matched economists’ forecast, although the reading below 50 signals that overall sentiment is still poor.
David Crowe, the chief economist at NAHB said, “Prevailing indicators portend some improvement in the overall economy, which should generate modest housing market gains later this year.” The sub-index of single-family homes was steady at 17 and buer traffic was steady at 12, while six-month sales expectations led the gain with a two-point rise to 27. The weak sentiment among homebuilders is seen as closely linked to high unemployment and the weak labor market recovery. The gauge is up from a record low of 8 that was recorded in January 2009.