By Ian McKendry
WASHINGTON (MNI) – Home Builder confidence in new, single-family
homes was unchanged in February, for the fourth consecutive month,
according to the National Association of Home Builders/Wells Fargo
Housing Market Index, released Tuesday.
The February headline index held steady at 16 and the six-month
outlook index improved to 25 from 24, while the present situation index
also saw improvement moving up to 17 from 15. The “Traffic for
Prospective Buyers” index was unchanged at 12.
“Builders are telling us that some pockets of optimism have begun
to emerge, but many prospective purchasers are concerned about selling
their existing home in the current market, or face difficulty securing
credit for a home purchase — even when they are well-qualified,” NAHB
Chief Economist David Crowe said.
NAHB Chairman Bob Nielsen said credit conditions also remain tight
for new and existing projects and competition with foreclosed properties
is tough.
“While builders are starting to see more interest among potential
home buyers, we are also dealing with a multitude of challenges,
including competition from foreclosure properties and inaccurate
appraisals of new homes, which are limiting our ability to sell,”
Nielsen said.
Regionally, home builder confidence saw improvement in the
Northeast improving to 22 from 20 and the South moving up one point to
18. The Midwest decreased to 12 from 13 and the West fell to 13 from 15.
The NAHB/Wells Fargo HMI is compiled by surveying home builder
perceptions about different aspects of the market and seasonally
adjusting them with any number over 50 being considered “good” and less
than 50 being considered “poor.”
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MAUDR$]
