Home builders are still feeling uncertain about the economy and the housing market, according to the National Association of Home Builders. The association reported that builder confidence in the market for newly built single-family homes remained unchanged in March as economic woes continued to take their toll on potential buyers. The NAHB/Wells Fargo Housing Market Index held steady at nine in March, marking a fifth consecutive month of single-digit readings.
“Home builders are hopeful
that the recent economic stimulus package, and particularly the first-time home
buyer tax credit that it included, will have a positive impact on consumer
behavior and home sales as the prime home buying season gets underway,"
said Joe Robson, NAHB chairman and a home builder from Tulsa, Okla. “But it's
still too soon to tell how much of an impact that will be, especially as
builders find potential buyers are reluctant because of uncertainty about their
future job security and the overall economic outlook.”
economy continues to be the main drag on home sales activity right now, in
terms of consumer confidence across most of the country,” said David Crowe, the
NAHB’s chief economist. “What’s more, home builders report that tight credit
conditions are posing a further hurdle, especially for potential first-time
buyers, while potential trade-up buyers are finding it very tough to sell their
existing homes so they can make a move.”
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