LOS ANGELES — Homebuilders are a little more optimistic about the prospects for home sales over the next six months, but an index reflecting the sector’s confidence overall remained at an all-time low, an industry trade association said Monday.
The National Association of Home Builders/Wells Fargo housing-market index remained unchanged this month at 16, where it’s been since July.
But benchmarks for sales improved: The gauge of current sales conditions climbed one point to 16, while an index of builders’ sales expectations over the next six months rose by two points to 25.
Despite the silver lining, several major builders’ stocks tumbled Monday, with Miami- based Lennar Corp. leading the decline as its shares plunged 86 cents, or 7.3 percent, to $10.96.
The slightly brighter outlook for sales comes as builders factored in the potential benefits from the landmark housing stimulus legislation enacted last month.
The law includes a temporary $7,500 tax credit for first- time homebuyers that essentially works out to a 15-year, interest-free loan.
“Builders are anticipating the stimulative effects of this legislation and are optimistic that the tax credit will give those buyers who’ve been sitting on the fence the reason they need to jump back into the market,” NAHB president Sandy Dunn said in a statement.
The sector lobbied strongly for the provision, although builders differ on how much of a difference the measure will have in stimulating sales.
