As market watchers scan the economic horizons for reliable trends, all eyes are on the latest NAHB Housing Market Index report for January, released today. With interest rates at historical lows and buyer incentives in place, like the homebuyer’s tax credit, the news isn’t good.
Builder confidence declined again, by 1 point, following December’s one point decline, to 15, its lowest point since June 2009.
The survey cites “continuing concerns about the poor job market and large number of foreclosed homes for sale.” According to the report, builders are looking to Spring to see a rebound.
The current single family sales index and traffic index also showed declines. The expectations number held steady at 26.
On a regional basis, the HMI in the West declined the most, falling by 3 points to 16. For the complete report, go here.
With the national movement to walk-away from your mortgage gaining momentum, builders will be hoping an upturn in foreclosures doesn’t crater a housing recovery this Spring.
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