It may be a new year, but home builders continue to feel that the housing market has very few bright signs, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index reading.
According to NAHB/Wells, builder confidence remained at a relatively low level of 16 for a third consecutive month in January, with executives continuing to worry about a lack of steady construction financing.
"As we emerge from the traditionally slow holiday season, builders continue to look for signs of improvement in the economy, home buyer demand and builder and consumer credit conditions," said 2011 NAHB chairman Bob Nielsen. "Unfortunately, a severe lack of construction financing, and widespread difficulties in obtaining accurate appraisal values, continue to limit builders' ability to prepare for anticipated improvements in buyer demand in 2011."
Nielson is a home builder who works the Reno, Nev., construction market.
The index is derived from a monthly survey that NAHB has been conducting for more than 20 years. The trade group asks builders how they view different facets of the current single-family sales market and their expectations for the next six months. Any reading over 50 indicates that more builders view conditions as good than poor.
The report reflects a survey of 420 residential developers nationwide. The index for sales expectations over the next six months stayed put at 25. The index measuring foot traffic from prospective buyers rose one point to 12.
