Homebuilders' Confidence In Housing Recovery Hits All-Time Low

LOS ANGELES — Homebuilders' confidence in a near-term housing recovery sank to a new all-time low this month, reflecting growing worries over the U.S. financial crisis, rising unemployment and weakening consumer confidence, an industry trade association said Tuesday.

The National Association of Home Builders/Wells Fargo housing market index, started in January 1985, tumbled five points to nine in November. The index stood at 14 in October after slipping three points from September.

Index readings higher than 50 indicate positive sentiment about the market. But the index has drifted below 50 since May 2006 and below 20 since April.

"Today's report shows that we are in a crisis situation," NAHB Chairman Sandy Dunn said in a statement. "Tremendous economic uncertainties have driven consumers from the housing market, and it's going to take some major incentives to bring them back."

In recent weeks, homebuilders have ratcheted up pressure on Congress to take steps that go beyond trying to reduce foreclosures. the industry wants lawmakers to enact new incentives aimed at getting reluctant homebuyers back into the market.

Specifically, they're asking for a 10 percent tax credit of up to $22,000 for homebuyers that purchase a home over the next year and a temporary interest-rate reduction on 30-year mortgages.

"The housing downturn has already cost America three million jobs in construction and related industries, and this downward momentum cannot be stemmed without substantive government intervention," said David Crowe, the association's chief economist.

The builders' proposed housing aid measures would cost the government an estimated $270 billion, and would amount to a short-term fix at best, Deutsche Bank North America analyst Nishu Sood concluded in a research note earlier this month.

Builders have grown increasingly convinced that only government intervention will help stem the downward spiral in home prices and rising foreclosures that have led to a dearth in demand for new and preowned homes.

Major public builders such as D.R. Horton Inc., KB Home, and Centex Corp., have seen their stocks hammered as housing woes have worsened.

The latest builder index reflects a survey of 422 residential developers nationwide, tracking builders' perceptions of market conditions.

Builders' gauge of current sales conditions tumbled six points to eight, while the index of foot traffic by prospective buyers fell four points to seven. Builders' expectations for sales over the next six months remained at 19, the NAHB said.

Declines in builder confidence were seen across the U.S., with the biggest drop in the Midwest, where confidence declined by six points. The other regions _ Northeast, South and West _ saw builder confidence slide by five points.

Comments

[AmySue]

Makes me sorry I paid off my mortgage. I think there are so many things wrong with rewarding bad behavior. Reward the failing companies for poor management and overspending. Reward homeowners for signing a note for their house that they could NEVER afford. Reward the banks for not regulating. yadda yadda What so I get for paying my taxes and bills and owning everything I have free and clear? Something is really wrong with this picture. Can't wait until January 20th.

[JoeBlough]

I thought Republicans wanted Government out of the Free Market? The whole GOP is built upon fiscal conservatism. Is all this Government intrusion into bailing out losers a Bush idea or a new GOP Party platfrom?

[ConstructionStaffing]

Temporary construction staffing allows contractors to save money by only hiring workers they need, in these tough economic times staying under budget is important to both contractor and skilled tradesmen. Past statistics have shown that when an economic recession occurs temporary construction workers are the first to go, but, when the tides starts to turn, even a little, temporary workers are the first to get hired back even before permanent workers.

As the United States economy tries to right itself, more commercial and industrial construction projects are starting to move beyond the planning stage and temporary construction workers are being sought in huge numbers across the country.

Grus construction personnel helps in many other areas of human resources, by providing services for payroll, interviewing, workers compensation, and unemployment Grus Construction Personnel can fill the temporary staffing needs of the largest industrial construction contractors and even the smallest commercial contractors by tailoring the services to match the needs of the client perfectly.

Grus maintains a large, full-time work force and we have personnel who will travel to out-of-town job sites. Workers are billed at varied wage levels to reflect their current abilities and to complete your project without unnecessary expense. Grus is an active member of the Associated Builder & Contractors Association (ABC) and we are committed to the success of the construction industry.
1-888-230-9908
Online at: http://www.gruspersonnel.com
Blog at : http://applyforconstructionjobs.blogspot.com/

[Sundialsvc4]

To me, it's simple...

(1) I want a warm, comfortable place to live. I want a house. I am a "willing buyer."

(2) I have ZERO interest in the huge cracker-boxes that line the street of my supposedly-affluent town, which I see every day. I know that those Mercedes and Hummers that are so-artfully parked in the driveway haven't moved in weeks, so I must not be alone. Tear them down and turn that cornfield back into a place to plant corn. I know how to sell corn.

(3) Seeing what was coming, I sold my last house and I've been renting for a good while. But millions of folks are "under water," owing too-much money at too-high rates secured by an overvalued piece of collateral that they don't want. They're gonna walk. They're doin' it.

(4) I can stay "out of the market" indefinitely. I am a "willing buyer" but I am not a fool. Give me a fair price for a good asset, financed at a reasonable cost with a fixed rate. Otherwise, I'm not buying.

[darthdarcy]

Paulson is driving housing down, with his arrogance and refusal to act upon the sections of the Bail-out Bill that addresses and compels him to act upon the foreclosures..

[Sundialsvc4]

"Any Civil Officer ... shall be impeached ..."

(The Supreme Law Of The Land: Article II, Section 4.)

[newshadeofblue]

The only way I can see this stabilizing is if job growth starts to rise coupled with the lowering of interest rates. The reduction of cost of credit to potential buyers could help but with the lack of job security, I just don't see how we could get into a buyers market until late in the third quarter.