Home Builder Confidence Slips
Home builder confidence fell to 13 in August, the third straight month that builders have felt that conditions were declining — and the worst measurement since March 2009.
“Buyers just aren’t stepping up to the plate,” writes Mike Larson, real estate analyst with Weiss Research. “Unless and until the job market improves, we are simply not going to get any traction in the housing market.”
Sentiments lower than 50 indicate negativity. The last time the index climbed above 50 was in April 2006.
Source: Associated Press, Alan Zibel (08/16/2010)
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Home Builder Confidence Declines
The National Association of Home Builders monthly reading of builder confidence declined to 14, the lowest level since March 2009.
“The pause in sales following expiration of the home buyer tax credits is turning out to be longer than anticipated due to the sluggish pace of improvement in the rest of the economy,” David Crowe, NAHB’s chief economist, explained in a statement.
The NAHB predicts that business will improve 10 percent in the second half of the year.
Source: The Wall Street Journal, Robbie Whelan (07/19/2010)
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Construction Up Along With Builder Confidence
Construction of new homes rose to an annual rate of 591,000 in January, up 2.8 percent from December when the revised rate was 575,000, the Commerce Department announced Wednesday.
Meanwhile, the monthly home builder confidence scale rose two points in February to 17.
The National Association of Home Builders Chair Bob Jones said, “Builders are slightly more optimistic that the housing recovery is finally beginning to take root.”
Builder confidence was highest in the Northeast and the South, weaker in the West and lowest in the Midwest.
Source: The Wall Street Journal, Meena Thiruvengadam (02/16/2010) and CNN, Blake Ellis (02/17/2010)