Home Builder Confidence Virtually Unchanged in September

Reflecting the ongoing difficulty in the market for new single family homes, home builder confidence was virtually unchanged for September, according to an industry report released on Monday.

Builder confidence fell one point to 14 on the National Association of Home Builders/Wells Fargo Housing Market Index - a low level that the index hasn’t budged much from in the past six months, hovering between 13 and 16. An index reading of any number over 50 indicates that more builders consider conditions to be good than poor.

"Very little has changed in terms of housing market conditions so far this year," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nevada. "Builders continue to confront the same challenges in accessing construction credit, obtaining accurate appraisal values for new homes, and competing against foreclosed properties that they have seen for some time. Beyond this, both builder and consumer confidence took a hit in recent weeks with the market disruptions caused by the S&P downgrade and congressional gridlock on the budget deficit."

"The fact that the HMI continues to hover within such a narrow, low range reflects builders' awareness that many consumers are simply unwilling or unable to move forward with a home purchase in today's uncertain economic climate," added NAHB Chief Economist David Crowe. "While some bright spots are beginning to emerge in about a dozen select metro areas, the broader picture remains fairly bleak due to the weak economy and job market."

By region, the Midwest was the only one with an increase, up by one-point to a score of 11. The Northeast and South each posted two-point declines to 15 and the West posted a three-point decline to 12.


Source:
National Association of Home Builders