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Tuesday, May 17, 2011

Homebuilder confidence falls in the West

Homebuilder confidence falls in the West

One measure of homebuilder psyche — the National Association of Home Builders/Wells Fargo Housing Market Index — shows that developers in the West are less optimistic in the middle of prime selling season as a trade group official says rising gasoline prices are creeping into shopper pysche.

The NAHB/Wells index for the West in May was 16 – that is 2 below April and 3 points off vs. a year ago. NAHB/Wells index comes from a builder survey that tabulates "a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor."

Also …
Nationwide, The NAHB index stood at 16 again in May — a low level where it's sat for six out of the past seven months.
Other regions: Northeast, down 5 to 15; Midwest, flat at 14, the South up 1 to 16.
NAHB Chairman Bob Nielsen: "Many builders in this month's survey cited high gas prices as a further contributor to consumer anxiety and reluctance to go forward with a home purchase."
NAHB Chief Economist David Crowe: "90 percent of builders surveyed said clients are concerned about being able to sell their existing home at a favorable price, while 73 percent said consumers think it will be difficult for them to get financing. Clearly, access to credit for both builders and buyers remains a considerable obstacle to the revival of the new-homes market."

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