Industry News

Condo builder confidence weak but improving

More prospective buyers tour model homes in fourth quarter

Although condo market conditions were substantially weaker in the fourth quarter of 2006 than they were a year earlier, builders and developers expect better conditions six months from now, according to the latest results of the National Association of Home Builders' Multifamily Condo Market Index (MCMI) released Friday. "The condo market is coming back toward balance following the previous four quarters when the pendulum swung from red-hot to seriously cold," said NAHB Chief Economist David Seiders in a statement. "What we are looking for -- and likely to find in 2007 -- is a healthy and sustainable level of condo production that will fall short of the unsustainable levels registered during the earlier boom period, but that will meet current market demands." The component of the MCMI that tracks current condo market conditions showed an index value of 29.6, compared with a value of 47.1 during the fourth quarter of 2005; the index's low point came during the third quarter of 2006, w...