Builder outlook remains gloomy
April 28th, 2008, 10:58 am · Post a Comment · posted by mistywilliams
Home builders are slightly more confident in the housing market these days, at least compared with the end of last year, a new report shows.
But an index tracking builder confidence remained stagnant for the third month in a row in April — up two points from a record-low set in December, according to the National Association of Home Builders.
“While builders continue to report improvement in traffic through their model homes compared with late last year, this activity has not translated to actual sales,” association chief economist David Seiders said.
The National Association of Home Builders/Wells Fargo Housing Market Index gauges builder perceptions of current home sales, sales expectations for the next six months and buyer interest.
Reports from builders in the Valley seem to reflect a similar trend.
Model homes in new subdivisions are getting more buyer interest, but some people are coming back a half a dozen times or more to look at homes and still won’t bite, industry observers say.
Still, things are looking up for the Valley’s new home market.
Home sales have been holding steady for the past three months. And a survey of 4,754 floor plans showed 69 percent either remained at the same price or saw a price increase, according to local analyst RL Brown.
