The National Association of Home Builders said Monday that its index of builder sentiment fell in September to a reading of 14, one point below the prior month.
Any reading below 50 indicates negative sentiment among builders. The index has not reached 50 since April 2006, about a year before home prices began sagging in earnest.
The index has been below 20 for all but one month during the past two years.
"Very little has changed in terms of housing market conditions so far this year," said NAHB chairman Bob Nielsen, a home builder from Reno, Nev., one of the hardest hit real estate markets in the nation.
“Builders continue to confront the same challenges in accessing construction credit, obtaining accurate appraisal values for new homes, and competing against foreclosed properties that they have seen for some time,” he said.
NAHB chief economist David Crowe added, that while the trade group is seeing some bright spots in selected metropolitan areas, “The fact that the HMI continues to hover within such a narrow, low range reflects builders' awareness that many consumers are simply unwilling or unable to move forward with a home purchase in today's uncertain economic climate.”
