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NAHB: Home Builder Confidence Is Low
Published: March 18, 2008
The National Association of Home Builders said Monday its housing market index--which gauges builders' perceptions of current conditions, interest from potential buyers and expectations for home sales over the next six months--for March was the third lowest reading on record.
Tighter lending restrictions and hesitant buyers have hurt home sales, USA Today reports. As a result, the index came in at 20 in March for the second month in a row.
Since September, the index, derived from a survey of about 400 residential developers nationwide, has been at 20 or below, indicating builder discomfort. Index readings above 50 imply a positive reaction. Since May 2006, the index has been below 50.
"Interested buyers are out there, but they are either reluctant to go ahead with a home purchase or they are unable to find mortgage financing they can afford," NAHB president Sandy Dunn said.
Confidence in the Northeast and West dropped; in the Midwest, builder confidence was unchanged. The South showed a slight increase. Prospective buyer traffic also remained unchanged.
