Builder confidence for new, single-family homes remains low

Overall builder confidence for new, single-family homes nationwide remained steady in May, reaching 16 points for the sixth time in seven months, according to a housing market index released today by the National Association of Home Builders/ Wells Fargo. High gas prices, concern about being able to sell an existing home at a good rate and difficulty finding financing were cited by builders as reasons for consumer anxiety and reluctance to move forward with home purchases.

“Builder confidence has hardly budged over the past six months,” said Bob Nielson, chairman of NAHB. “Persistent concerns regarding competition from distressed property sales, lack of production credit, inaccurate appraisals and proposals to reduce government support have continued to cloud the outlook.”

A component index measuring traffic of prospective buyers increased 1 point. While still low, that puts it at its highest level since May 2010. TRD