Builder Sentiment Falls, Lowest Since 2001
From Reuters:
U.S. home builder sentiment lowest since Nov 2001
An index of U.S. home builder sentiment fell for a fourth consecutive month in April to its lowest since November 2001, the National Association of Home Builders said on Wednesday.
The drop was in response to rising mortgage rates, continued affordability problems and subsiding demand from investors and speculators, the NAHB said.
The NAHB/Wells Fargo Housing Market index slid to 50 in April, seasonally adjusted, from March's downwardly revised 54. It was the lowest reading since November 2001, when it stood at 48.
"Home builders definitely view this as something of a transition period, where demand from speculators is easing off and the market is heading to a more sustainable level of activity following the record-breaking performance of 2005," said NAHB President David Pressly, a home builder in Statesville, North Carolina, in a press release.
The confidence level indicates the majority of builders see conditions as neither positive nor negative in their markets, the NAHB said. Readings above 50 indicate more builders view their market conditions as favorable, rather than poor.
The index was also below its year-ago level of 67.
...
The NAHB said its index for current sales of new homes fell to 54 in April from a downwardly revised 59 in March.
The index measuring builder sentiment over the next six months slipped to 58 from 62 in March, while the potential buyer traffic index fell to 39 from an upwardly revised 40.
U.S. home builder sentiment lowest since Nov 2001
An index of U.S. home builder sentiment fell for a fourth consecutive month in April to its lowest since November 2001, the National Association of Home Builders said on Wednesday.
The drop was in response to rising mortgage rates, continued affordability problems and subsiding demand from investors and speculators, the NAHB said.
The NAHB/Wells Fargo Housing Market index slid to 50 in April, seasonally adjusted, from March's downwardly revised 54. It was the lowest reading since November 2001, when it stood at 48.
"Home builders definitely view this as something of a transition period, where demand from speculators is easing off and the market is heading to a more sustainable level of activity following the record-breaking performance of 2005," said NAHB President David Pressly, a home builder in Statesville, North Carolina, in a press release.
The confidence level indicates the majority of builders see conditions as neither positive nor negative in their markets, the NAHB said. Readings above 50 indicate more builders view their market conditions as favorable, rather than poor.
The index was also below its year-ago level of 67.
...
The NAHB said its index for current sales of new homes fell to 54 in April from a downwardly revised 59 in March.
The index measuring builder sentiment over the next six months slipped to 58 from 62 in March, while the potential buyer traffic index fell to 39 from an upwardly revised 40.
8 Comments:
Housing Starts and Building Permits due out at 8:30am tomorrow morning.
grim
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Anecdote:
Spoke to a realtor based out of Westfield. He said it is still a seller's market there, but relatively close to being balanced. His advice to clients is to price just slightly below 2005 peak levels so that the property will move. His concern isn't so much the current state of the market, but rather where the market will be in about 3-6 months. He thought that there is going to be a wave of inventory coming, and you do not want the stigma of a property on the market more than a few weeks. A typical property in a good town is gone in 3-5 months, but if priced correctly, should be gone in under a month.
CF,
His analysis is spot on. I've spoken to a few realtors who have said the same. A quick glance at the DOM of the recent under contracts show it to be true.
Looks like a number of homes are moving in the 10 days or less range. While I'm can't make a value call, the prices seem to be more reasonable than similar homes on the market.
Long DOM homes are also selling, but only after large price reductions. A UC in Westfield today shows that to be true.. Original list was $925,000, went under contract with a list price of $799,000.
Unfortunately, it'll be some time before we know what these UC properties sold for.
Can't argue though. If the property is priced better than anything similar in the same market, it'll move.
grim
Poor poor Greedy cardboard box builders.
Collapse!
Can someone send me a link to this piece in the WSJ:
We Must Undo Kelo Decision's Damage
The fools paying over peak prices will be regretting it shortly.
Ask all those bullish Microsoft shareholders back 5 years ago
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Take a look at Wallstreetwinnersonline.com
RickJ
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