Home Builder confidence hit record low

It’s good news that U.S. homebuilder confidence is at a record low score of 18. Western U.S. homebuilders scored 14.

Builder confidence in the market for new single-family homes was further shaken in October due to continuing problems in the mortgage market, substantial inventories of unsold units and the perceived effect that negative media coverage is having on potential buyers… The HMI fell two more points to 18 in October, its lowest point since the series began in January of 1985.

In a related article on Inman News (subscription) I think I see the problem.

While builders have slashed new-home production, “inventories of new homes for sale are hardly off their 2006 highs and the months’ supply actually has moved up to a cyclical high,” Seiders stated in the report. [my emphasis]

The U.S. homebuilders are not fast learners.

October 22, 2007 by Realtor John Wake

About The Author

John Wake

Born in Phoenix, trained as an economist and now a licensed Realtor, John uses hard data from the real estate market to help his clients -- buyers and sellers of residential real estate -- uncover their best choices for finding the right home or finding a buyer for their current home.

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