The U.S. housing market has failed to gain strength with the latest data showing falling new-home sales and home prices, even as consumer confidence improved on a strengthening economic outlook, according to Bloomberg. On Thursday, Bloomberg reported that its index of consumer confidence, formerly the ABC News U.S. Weekly Consumer Comfort Index, improved to -39.2 in the week ending Feb. 20, gaining from -43.4 the week prior. The report also showed that 49% of respondents reported a positive financial outlook, which is the highest figure in more than a year.
Despite improvement in American’s view of the economic recovery and their own finances, the housing market recovery is still struggling to gain traction. A separate report from the Federal Housing Finance Agency showed a 13% decline in new-home sales in the fourth quarter from the previous year, while home prices dropped 4% in that period. Home sales fell to an annual pace of 284,000, which was lower than forecast, and the home price drop was the 13th consecutive year-over-year decline and the largest in more than a year.