Builders of single-family homes lost some confidence in the market this month, according to a new survey from the National Association of Home Builders.
The association’s monthly Housing Market Index, compiled with the help of lender Wells Fargo, slipped to 18 - matching the record low of December 2007. The index dates back to 1985.
"Clearly, conditions in the housing market remain very weak, and our builder members are not seeing any signs of improvement," said NAHB chief economist David Seiders. "Indeed, the continuing erosion of employment and consumer confidence/sentiment, coupled with surging energy costs, falling house prices and rising home mortgage foreclosures, pose considerable downside risks to the economy and our housing forecast.”To fix the problem, NAHB Chief Executive Officer Jerry Howard said Congress needs to pass legislation aimed at boosting the U.S. housing market. .
"Each week that goes by, another 15,000 workers are losing their jobs and 47,000 families are entering foreclosure. Home equity has fallen by $879 billion during the past year alone," said Howard. "How many more Americans have to suffer before Congress will act?"
The survey asks builders to rate home sales and expectations for the next six months. Any number over 50 says a majority view the market as positive.
Builder confidence slipping, NAHB says
June 20, 2008