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Builder Confidence Unchanged in September
Builder confidence in the market for newly built, single-family homes held unchanged in September from the previous month's low level of 13, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today.
In general, builders haven't seen any reason for improved optimism in market conditions over the past month. If anything, consumer uncertainty has increased, and builders feel their hands are tied until potential home buyers feel more secure about the job market and economy.
The stall in the nation's housing market continues. Builders report that the two leading obstacles to new-home sales right now are consumer reluctance in the face of the poor job market and the large number of foreclosed properties for sale. However, we do expect that moderate improvement in the job market will help boost consumer confidence and improve conditions for new-home sales in this year's final quarter.
Neither the component gauging current sales conditions nor the component gauging sales expectations in the next six months budged in September from their low readings in the previous month, holding at 13 and 18, respectively. The index gauging traffic of prospective buyers edged down a single point, to 9.
Regionally, HMI readings fell two points in the Northeast and three points in the Midwest, to 16 and 12, respectively. The South posted a two-point improvement to 14 while the West held unchanged, at 8.
Posted: September 20, 2010 Monday 10:00 AM