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SNIPS NEWSSheet Metal And HVAC Industry News

Home builders' confidence dips

August 17, 2010
The newest National Association of Home Builders/Wells Fargo Housing Market Index declined one point to 13 - the index’s lowest mark since March 2009.

Builders aren’t very confident about the market for new homes right now, according to a new survey from the NAHB.

The newest National Association of Home Builders/Wells Fargo Housing Market Index declined one point to 13 - the index’s lowest mark since March 2009. Any number over 50 says most builders feel positive about the market.

"Builders are expressing the same concerns that they are hearing from consumers right now, particularly the sense that the overall economy and job market aren't gaining any traction," said NAHB Chairman Bob Jones, a builder from Bloomfield Hills, Mich. "Meanwhile, many continue to report that problems with inaccurate appraisals, competition from the large number of distressed properties on the market, and tight consumer lending conditions are causing them to lose potential sales."

NAHB chief economist David Crowe said the survey’s results show that many home builders are struggling.

"Today's report reflects single-family home builders' concerns about current and future economic conditions and about the increasing hesitancy they are seeing among potential home buyers," Crowe said. "It also reflects the frustration that builders are feeling regarding the effects that foreclosed property sales are having on the new-homes market, with 87 percent of respondents reporting that their market has been negatively impacted by foreclosures."

Crowe added that he expects the market to get a little better in the last months of this year.

   

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