Homebuilder confidence at 15-month low

WASHINGTON Mon Jul 19, 2010 11:34am EDT

Construction workers continue work on a new subdivision of homes in San Marcos, California April 23, 2010. REUTERS/Mike Blake

Construction workers continue work on a new subdivision of homes in San Marcos, California April 23, 2010.

Credit: Reuters/Mike Blake

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WASHINGTON (Reuters) - Home-builder sentiment fell more-than-expected in July to the lowest level in more than a year after a popular home-buyer tax credit expired in April, the National Association of Home Builders said on Monday.

The NAHB/Wells Fargo Housing Market index fell two points to 14, the lowest level since April 2009, the group said in a prepared statement. It was the second straight decline in the index.

Economists polled by Reuters had expected the index to fall to 16. June was revised lower to 16. A reading below 50 indicates more builders view sales conditions as poor than good. The index has not been above 50 since April 2006.

(Reporting by Corbett B. Daly, Editing by Neil Stempleman)

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Comments (6)
Gotthardbahn wrote:
Geez, these guys were gloomy BEFORE the real estate meltdown started in August/2007. Given all the foreclosures occurring nowadays and the enormous supply of housing stock on the market, why would any homebuilder have even the slightest amount of confidence?

Jul 19, 2010 11:43am EDT  --  Report as abuse
pilgrimson wrote:
When you consider all of the economic activity involved with the housing bubble and erase all of it, it’s no wonder that our economy is in the toilet. And since that bubble is not coming back, nor is there any reason why it would or should, how can our economy come back either, by that same extent?

All that wealth squeezed out of the declining value of existing real estate is erased purchasing power, is it not?

Jul 19, 2010 12:26pm EDT  --  Report as abuse
STORYBURNeasy wrote:
25% real unemployment does wonders for builder confidence

Jul 19, 2010 12:53pm EDT  --  Report as abuse
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