UPDATE 1-US June homebuilder sentiment falls post-tax credit

(Adds details, background)

By Corbett B. Daly

WASHINGTON, June 15 (BestGrowthStock) – U.S. home-builder sentiment
fell in June by the sharpest amount since the height of the
financial crisis as the expiration of a popular homebuyer tax
credit dimmed prospective sales, the National Association of
Home Builders said on Tuesday.

The NAHB/Wells Fargo Housing Market index dropped 5 points
to 17, the sharpest point decline since November 2008, the
group said in a statement. The sharper-than-expected decline
followed two successive increases as the tax credit ran its
course.

Economists polled by Reuters had expected the index to fall
slightly to 21. A reading below 50 indicates more builders view
sales conditions as poor than good. The index has not been
above 50 since April 2006.

“Builders still remain very cautious and are aware that
several factors could impede the nascent housing recovery,
including serious problems in obtaining financing for the
production of housing, faulty appraisal practices and
competition from short sales and foreclosed properties,” said
David Crowe, NAHB chief economist.

All three subindexes of the Housing Market Index, including
a measure of future homebuilding activity, saw declines in
June.

The current sales conditions gauge fell six points to 17,
the sharpest drop since August 2006 and the lowest level since
March. The sales expectations measure for the next six months
fell four points to 23, the lowest level since March 2009.

The traffic of prospective buyers index fell two points to
14.

Investing
(Reporting by Corbett B. Daly; Editing by Andrea Ricci)

UPDATE 1-US June homebuilder sentiment falls post-tax credit