WASHINGTON – Builder confidence in the market for new, single-family homes remained unchanged in November due to continuing mortgage market problems, a large inventory overhand and ongoing concerns about the effects of negative media coverage, according to the most recent National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The new HMI remained even with October’s upwardly revised reading of 19, its lowest point since the index began in Jan. 1985.
“Consistent with what builders said in last month’s survey, many are reporting that their special sales incentives are having limited success in terms of getting buyers in the door,” said NAHB President Brian Catalde, a home builder from El Sugundo, CA. Catalde noted that of particular concern is that the negative media reports are dissuading buyers and fueling unrealistic expectations regarding home price discounts.
“The message from today’s report is that builders do not see any significant change in housing market conditions as compared to last month,” said NAHB Chief Economist David Seiders. “While they continue to work down inventories of unsold homes and reposition themselves for the market’s eventual recovery, they realize it will be some time before market conditions support an industry upswing in building activity – most likely by the second half of 2008.”
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