Industry News

Builder confidence hits 22-year low

Excess inventories, unsure buyers create dismal environment

Builder confidence in the market for new single-family homes fell to a 22-year low in October as weak home sales and mortgage credit problems continued to dissuade potential buyers, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI dropped two points this month to 18 -- its lowest point since the series began in January 1985 -- and has now fallen in each of the past eight months, according to NAHB. A number over 50 indicates more builders see sales conditions as good than poor. "Builders in the field are reporting that, while their special sales incentives are attracting interest among consumers, many potential buyers are either holding out for even better deals or hesitating due to concerns about negative and confusing media reports on home values," said NAHB President Brian Catalde in a statement. Two out of three component indexes of the HMI declined in October. The index gauging current single-family home ...