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August 16, 2010 at 08:00 PM
For the third month in a row this summer, builders surveyed in the National Association of Home Builders (NAHB)/Wells Fargo housing market index for August expressed a lack of confidence in the newly built, single-family home market.
The housing market index released Monday, August 16 declined one point to 13, its lowest level since March 2009.
“Builders are expressing the same concerns that they are hearing from consumers right now, particularly the sense that the overall economy and job market aren’t gaining any traction,” said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Michigan, in a news release. “Many continue to report that problems with inaccurate appraisals, competition from the large number of distressed properties on the market, and tight consumer lending conditions are causing them to lose potential sales.”
Last month, the NAHB index dropped to 14, its lowest point since April 2009. An index reading below 50 indicates the majority of builders have a negative view of market conditions, and the index hasn’t risen above 50 in more than three years. It hit a low of 8 in January 2009 and a high of 72 in June 2005.
Analysts polled by Bloomberg had anticipated an index reading of 15 in August.
