Builder confidence hits low
October 19th, 2007, 3:36 pm · Post a Comment · posted by mistywilliams
A national index tracking builder confidence hit its lowest point since it was started in January 1985 this month.
The National Association of Home Builders sites continuing problems in the mortgage market, large inventories of unsold homes and the impact of negative media coverage on potential buyers as leading to October’s 2-point decline.
“Consumers are still trying to sort out market realities and get the best deals they can,” association chief economist David Seiders said in a statement. “When the market is in proper balance, people can recognize a good deal when it comes along; at this point, they view a good deal as a moving target.”
The index, which is co-produced by Wells Fargo, looks at builder perceptions of current home sales, sales expectations for the next six months and potential buyer traffic.
One positive sign from the latest survey was that builder expectations for sales conditions in the next six months held steady.
“Builders believe they are taking the right steps to reduce inventories and position themselves for the market recovery that lies ahead,” Seiders said.
