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Mortgage News Daily combines the expertise of some of the housing industry's leading minds with the power of social media to offer an always lively, constantly evolving web community. MND communicates breaking news, streams video, and provides expert opinion and commentary to a community of interested market professionals and curious consumers.Home Builder Confidence Falls. Foul Weather and Distressed Sales Cited as Reason
The National Association of Home Builders released their monthly Housing Market Index today.
Derived from a monthly survey that NAHB has been conducting for more
than 20 years, the NAHB/Wells Fargo Housing Market Index gauges builder
perceptions of current single-family home sales and sales expectations
for the next six months as “good,” “fair” or “poor.” The survey also
asks builders to rate traffic of prospective buyers as “high to very
high,” “average” or “low to very low.” Scores for each component are
then used to calculate a seasonally adjusted index where any number over
50 indicates that more builders view conditions as good than poor.
In March, Builder confidence lost the small amount of progress seen in February, falling two points to 15 where the index sat in January.
[Image or graph removed from email. View full article with images]
Here is a breakdown of the components:
- Current sales conditions declined two points to 15
- Sales expectations in the next six months declined
three points to 24
- Traffic of prospective
buyers declined two points to 10.
[Image or graph removed from email. View full article with images]
Regionally, the HMI results were mixed in March. While the Northeast
posted a five-point gain to 23 and the West posted a one-point gain to
15, the Midwest HMI slid three points to 10 and the South HMI edged down
one point to 18.
The NAHB cites poor weather conditions and distressed property sales as
reasons for the lack of buyer and builder confidence.
NAHB Chairman Bob Jones says:
“Unusually poor weather conditions certainly had a negative effect on
builders’ business in February.....At the same time, the continual flow of distressed properties priced
below the cost of production is having an adverse effect on new-home
appraisals and also making it tough for builders’ customers to sell
their existing homes.”
NAHB Chief Economist David Crowe says:
“The lack of available credit for new projects, the large number of
distressed properties for sale and the continuing hesitancy of potential
buyers due to the weak job market are definitely weighing on builder
confidence at this time....That said, the inventory of new homes on the market is at an
extremely low level, and we do expect a 25 percent improvement in
new-home construction in 2010 over 2009 to rebuild inventory and meet
expected pent-up demand.”
READ MORE ON SHADOW INVENTORY
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This email was sent to you by:
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Mortgage News Daily
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Anonymous Anonymous |
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Message:
YOUR MESSAGE HERE
Home Builder Confidence Falls. Foul Weather and Distressed Sales Cited as Reason
The National Association of Home Builders released their monthly Housing Market Index today.
Derived from a monthly survey that NAHB has been conducting for more
than 20 years, the NAHB/Wells Fargo Housing Market Index gauges builder
perceptions of current single-family home sales and sales expectations
for the next six months as “good,” “fair” or “poor.” The survey also
asks builders to rate traffic of prospective buyers as “high to very
high,” “average” or “low to very low.” Scores for each component are
then used to calculate a seasonally adjusted index where any number over
50 indicates that more builders view conditions as good than poor.
In March, Builder confidence lost the small amount of progress seen in February, falling two points to 15 where the index sat in January.
Here is a breakdown of the components:
- Current sales conditions declined two points to 15
- Sales expectations in the next six months declined
three points to 24
- Traffic of prospective
buyers declined two points to 10.
Regionally, the HMI results were mixed in March. While the Northeast
posted a five-point gain to 23 and the West posted a one-point gain to
15, the Midwest HMI slid three points to 10 and the South HMI edged down
one point to 18.
The NAHB cites poor weather conditions and distressed property sales as
reasons for the lack of buyer and builder confidence.
NAHB Chairman Bob Jones says:
“Unusually poor weather conditions certainly had a negative effect on
builders’ business in February.....At the same time, the continual flow of distressed properties priced
below the cost of production is having an adverse effect on new-home
appraisals and also making it tough for builders’ customers to sell
their existing homes.”
NAHB Chief Economist David Crowe says:
“The lack of available credit for new projects, the large number of
distressed properties for sale and the continuing hesitancy of potential
buyers due to the weak job market are definitely weighing on builder
confidence at this time....That said, the inventory of new homes on the market is at an
extremely low level, and we do expect a 25 percent improvement in
new-home construction in 2010 over 2009 to rebuild inventory and meet
expected pent-up demand.”
READ MORE ON SHADOW INVENTORY
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