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Homebuilders in US still pessimistic
Source: Agencies |
August 16, 2011, Tuesday
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HOMEBUILDERS in the United States are just as pessimistic about the depressed housing market as they were two years ago.
The National Association of Home Builders yesterday said its index of builder sentiment in August was unchanged at 15. The index has been below 20 for all but one month during the past two years.
Any reading below 50 indicates negative sentiment about the housing market. It hasn't reached 50 since April 2006, the peak of the housing boom.
Separate gauges of current single-family home sales and foot traffic of potential buyers each rose a point this month. But the outlook for sales for the next six months fell 2 points.
Last year, the number of people who bought new homes fell to its lowest level dating back nearly a half-century. Sales this year haven't fared much better.
Builders are struggling to compete with foreclosures, which have made the price of re-sales more competitive. Many buyers are having difficulty obtaining loans or meeting higher down payment requirements. Low appraisals are scuttling some deals after contracts have been signed. Some would-be buyers who want to purchase a new home can't sell their old one.
Each new home built creates an average of three jobs for a year and generates about US$90,000 in taxes, the builders' trade group said.
The National Association of Home Builders yesterday said its index of builder sentiment in August was unchanged at 15. The index has been below 20 for all but one month during the past two years.
Any reading below 50 indicates negative sentiment about the housing market. It hasn't reached 50 since April 2006, the peak of the housing boom.
Separate gauges of current single-family home sales and foot traffic of potential buyers each rose a point this month. But the outlook for sales for the next six months fell 2 points.
Last year, the number of people who bought new homes fell to its lowest level dating back nearly a half-century. Sales this year haven't fared much better.
Builders are struggling to compete with foreclosures, which have made the price of re-sales more competitive. Many buyers are having difficulty obtaining loans or meeting higher down payment requirements. Low appraisals are scuttling some deals after contracts have been signed. Some would-be buyers who want to purchase a new home can't sell their old one.
Each new home built creates an average of three jobs for a year and generates about US$90,000 in taxes, the builders' trade group said.
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