Industry News

Builder confidence sinks in December

Views on sales, buyer traffic impacted

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The National Association of Home Builders/Wells Fargo Housing Market Index dropped slightly in December compared to November, and was substantially lower compared to the index in December 2005. Based on a monthly survey that measures builder perceptions and expectations for home sales, the index dropped to 32 in December, compared with 33 in November and 57 in December 2005. An index rating above 50 indicates that more builders view sales conditions as good, while a rating below 50 indicates that more builders view conditions as poor. Builders are asked whether their perceptions of current single-family home sales and sales expectations for the next six months are either "good," "fair" or "poor," and also asks builders to rate the volume of prospective buyers as "high to very high," "average" or "low to very low." The index is based on these builder ratings. The index was 57 in January and fell in February through September to a rating of 30 in September. The index improved in Oct...