Following a slight uptick in July, builder confidence in the market for newly built, single-family homes remained unchanged in August, according to the National Association of Home Builders’ Housing Market Index, released today. In a survey of builder perceptions for home sales expectations over the next six months, where any number greater than 50 means more builders view conditions as good than poor, the index remained at 15. It has stood between 13 and 17 in each month since June 2010.
Continued competition from foreclosed homes on the market, inaccurate appraisals, tight credit and an especially uncertain economic climate contributed to another month of dismal confidence, Bob Nielsen, chairman of NAHB, said. As a result the component of the survey measuring sales expectations for the next six months declined two points to 19, after gaining six points in July.
On the other hand, current sales conditions and traffic of prospective buyers each gained a point. Builders were most confident in the Northeast, where the index gained four points to 19. – Adam Fusfeld