After a surge to new multi-year highs in March, homebuilder sentiment for April backed off a bit more than expected. While economists were expecting the headline reading in sentiment to fall down one notch from 71 to 70, the actual decline was three ticks to 68. Looking at the long-term chart, however, it’s hard to get too concerned about this reading at this point as it barely registers as even a blip. Longer term, the trend in sentiment is still positive.
The table to the right breaks down this month’s report by Present and Future Sales, Traffic, and regional sentiment. Both Present and Future Sales were down by equal amounts in April, and Traffic saw just a modest decline. On a regional basis, outside of the West region where sentiment is the strongest, homebuilders in the rest of the country are all a bit less optimistic this month than they were in March.
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