Builders' confidence in the market for new single-family homes slid as the National Association of Home Builders' housing market index — a monthly gauge of builder sentiment — slipped to 57 in January from a revised 58 in December.
Thomson Reuters' poll of economists predicted the index would be 58.
"After seven months above the key 50 benchmark, builder sentiment is reflecting the gradual improvement that is occurring in many markets throughout the nation," NAHB Chairman Kevin Kelly said.
"January's HMI reading is in line with our forecast as we head into the new year," according to NAHB Chief Economist David Crowe. "Steady economic growth, rising consumer confidence and a growing labor market will help the housing market continue to move forward in 2015."
Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as either "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as either "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.
The current single-family home sales index held at 62, the sales expectations index for the next six months slipped to 60 from 64; and the traffic of prospective buyers index dipped to 44 from 46.
