WASHINGTON - Builder confidence for newly built,
single-family homes dropped 1 point to 16 in December as continued
weakness in the economy and job markets weighed on consumers' potential
home buying plans, according to the latest NAHB/Wells Fargo Housing Market Index (HMI), released today.
"From an affordability standpoint, rarely has there been a better time in history to purchase a home, thanks to record low interest rates, attractive prices, and of course the recent extension and expansion of the home buyer tax credit," said Joe Robson, chairman of the National Association of Home Builders (NAHB) and a home builder from Tulsa, OK. "However, builders are not seeing the full impact of these conditions on buyer demand, partly because awareness of the latest incentives is still building, and partly because of concerns about job security and other economic woes."
"As we anticipated, this is shaping up to be a bumpy recovery period for the housing market," noted NAHB Chief Economist David Crowe. "While some families may be just starting to factor the expanded tax credit into their potential home buying plans, many are hesitating because of the poor economy. At the same time, tight lending conditions for both consumers and home builders continue to pose considerable obstacles on the road to a sustained housing and economic recovery."
Regionally, December's HMI results were somewhat mixed. The Northeast posted a 3-point gain to 23, while the West posted a 1-point gain to 19, the South registered no change at 17, and the Midwest posted a 2-point decline, to 12.
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"From an affordability standpoint, rarely has there been a better time in history to purchase a home, thanks to record low interest rates, attractive prices, and of course the recent extension and expansion of the home buyer tax credit," said Joe Robson, chairman of the National Association of Home Builders (NAHB) and a home builder from Tulsa, OK. "However, builders are not seeing the full impact of these conditions on buyer demand, partly because awareness of the latest incentives is still building, and partly because of concerns about job security and other economic woes."
"As we anticipated, this is shaping up to be a bumpy recovery period for the housing market," noted NAHB Chief Economist David Crowe. "While some families may be just starting to factor the expanded tax credit into their potential home buying plans, many are hesitating because of the poor economy. At the same time, tight lending conditions for both consumers and home builders continue to pose considerable obstacles on the road to a sustained housing and economic recovery."
Regionally, December's HMI results were somewhat mixed. The Northeast posted a 3-point gain to 23, while the West posted a 1-point gain to 19, the South registered no change at 17, and the Midwest posted a 2-point decline, to 12.
Read more
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