By Ian Mckendry
WASHINGTON (MNI) – Confidence among U.S. home builders remains low
in September according to the National Association of Home
Builders/Wells Fargo Housing Market Index, released Monday.
The September headline index number remained unchanged at 13
compared to August and is down six points from September 2009. The HMI
level of 13 is the lowest since March 2009 when it was at a level of 9.
“In general, builders haven’t seen any reason for improved optimism
in market conditions over the past month,” noted NAHB Chairman Bob
Jones.
“If anything, consumer uncertainty has increased, and builders feel
their hands are tied until potential home buyers feel more secure about
the job market and economy,” Jones added.
The index’s present situation component gauging current sales
conditions also remained unchanged at 13, while the expectations
component which came in at 18.
The component which measures traffic of prospective buyers saw a
slight down-tick to 9 from its level of 10 in August.
Regionally, the South was the only geographic area to see an
improvement, rising by two points to 14.
The Midwest HMI fell three points to 12, the Northeast fell two
points to 16, and the West remained unchanged at 8.
“Builders report that the two leading obstacles to new-home sales
right now are consumer reluctance in the face of the poor job market and
the large number of foreclosed properties for sale,” NAHB Chief
Economist David Crowe said.
“However, we do expect that moderate improvement in the job market
will help boost consumer confidence and improve conditions for new-home
sales in this year’s final quarter,” Crowe added.
** Market News International Washington Bureau: 202-371-2121 **
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