A gauge of homebuilder sentiment ticked down this month, the latest mixed signal for the U.S. housing recovery.
An index of builder confidence in the market for new single-family homes fell by one point to a seasonally adjusted level of 57 in December, the National Association of Home Builders said Monday.
A reading over 50 means a majority of builders see conditions as generally positive. Despite this month’s decline, the index has remained above the 50-point threshold for six straight months.
“The survey is consistent with solid homebuilder sentiment and a continuation of the housing recovery, in our view,” Barclays economist Blerina Uruci said in a note to clients.
The gauge jumped in September to 59, its highest level since November 2005. It dropped to 54 in October but rebounded to 58 in November. Economists surveyed by The Wall Street Journal had expected the index would hit 59 in December.
The current-sales component of the index fell to 61 from 62. The index measuring expectations for sales over the next six months declined to 65 from 66. A gauge of traffic from prospective buyers was unchanged at 45.
On a regional basis, the index surged this month in the West to 74 from 60 in November. But it declined in the Northeast to 46 from 51; in the Midwest to 54 from 56; and in the South to 58 from 62.
Other closely watched indicators have painted a more mixed picture of the U.S. housing sector.
Sales of previously owned homes, which account for roughly 90 percent of the U.S. market, have gained traction in recent months and in October reached their highest level in a year. Sales rose 1.5 percent from September and were up 2.5 percent from October 2013, the National Association of Realtors said last month.
Overall, housing starts rose 9.6 percent in the first 10 months of 2014 compared with the prior year, according to Commerce Department data. That partly reflects a surge in construction of apartment buildings and other multifamily dwellings. Starts on single-family structures rose a more modest 5.3 percent from 2013 through October.
