The National Association of Home Builders/Wells Fargo sentiment index registered a reading of 16 for the fourth consecutive month, in line with the median forecast of economists surveyed by Bloomberg News, data from the Washington- based group showed today. Readings below 50 mean more respondents said conditions were poor.
Builders must compete with a glut of unsold properties depressing home prices as the number of foreclosure filings rises and unemployment holds above 9 percent, damping demand for new construction.
“While builders are starting to see more interest among potential home buyers, we are also dealing with a multitude of challenges, including competition from foreclosure properties and inaccurate appraisals of new homes, which are limiting our ability to sell,” said NAHB Chairman Bob Nielsen, a homebuilder from Reno, Nevada, in an e-mailed statement “On top of that, an extremely tight lending environment continues to make it almost impossible to obtain credit for viable new and existing projects.”
Economists forecast the builder index in February would hold at 16, according to the median of 47 projections. Estimates ranged from 15 to 18.
The measure, which was first published in January 1985,
reached a record low of 8 in January 2009, and averaged 54 in the five years
before the recession began in December
2007.
Reported by Bloomberg News (02/15/2011)
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