WASHINGTON – According to the latest National Association of Home Builders/Wells Fargo Housing Market Index, builder confidence in the market for new single-family homes was virtually unchanged for a fourth consecutive month in January. Reportedly, builders are facing continued mortgage-market problems and inventory issues. The HMI increased one point to 19 in January, following a downwardly revised 18 in December 2007, and readings of 19 in October and November of 2007.
“Builders are taking a realistic view of the continuing housing market correction and doing what they should to get inventories under control and restore greater balance to the supply and demand equation,” said NAHB President Brian Catalde, a home builder from El Segundo, CA.
“The HMI has held within a narrow two-point range for the past five months, indicating that builder views of housing market conditions essentially haven’t changed over that time,” said NAHB Chief Economist David Seiders. Builders are anticipating a time when market conditions will support an upswing in building activity — most likely in the second half of 2008.”
The HMI tables can be accessed online at: www.nahb.org/hmi.
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