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Builders lose confidence in condo sales

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Builder confidence in the condominium market eroded significantly in the first quarter of 2007, fueled by an overwhelming supply and stricter mortgage lending rules, the National Association of Home Builders reported. According to the latest results of the Multifamily Condo Market Index (MCMI), the component that tracks current conditions in the condo market stood at 23.1 in the first quarter, down nearly 14 points from this time a year ago. A rating of 50 generally indicates that the number of positive responses is about the same as the number of negative responses. "There's heavy excess inventory and now the shakeout in the subprime mortgage market has taken its toll on the for-sale side of the multifamily housing market," NAHB Chief Economist David Seiders said in a statement. "The good news is new supply is being constrained, and that's laying the groundwork for the subsequent recovery." Seiders noted that, in many instances, multifamily developers who had begun fo...