Homebuilder Confidence Remains Lackluster

More of the same…for two years running now.  That’s the upshot of a story by AP writer Derek Kravitz analyzing the latest numbers from the National Association of Homebuilders.

Joe Raedle / Getty Images

All over the country, homebuilders face stiff competition from banks trying to quickly unload foreclosed homes.

“The National Association of Home Builders said Monday that its index of builder sentiment in August was unchanged at 15. The index has been below 20 for all but one month during the past two years.

Any reading below 50 indicates negative sentiment about the housing market. It hasn’t reached 50 since April 2006, the peak of the housing boom…

Toward the end of the piece, Kravitz writes,

“A special question on the survey this month showed that 41 percent of builders had lost a contract because a buyer could not sell their current home, said Bob Nielsen, chairman of the builders’ group.”

Among other issues homebuilders face are bargain basement prices on foreclosed homes and customers who can’t get loans from banks or a large enough downpayment scraped together.
State Impact recently looked at how the housing market, banks, and businesses are affected by recent events on Wall Street and in Washington.  You can check it out here.


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