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Title: Homebuilders Pessimistic About Housing Market
Source:
Associated Press
URL Source: http://www.sfgate.com/cgi-bin/artic ... /12/15/national/a071243S82.DTL
Published: Dec 15, 2010
Author: Associated Press
Post Date: 2010-12-15 11:55:25 by Brian S
Keywords: None
Views: 1724
Comments: 1
U.S. homebuilders remain uneasy about the housing market's prospects in the months ahead, discouraged by weak job growth and millions of foreclosures. The National Association of Home Builders said Wednesday that its monthly reading of builders' sentiment remained unchanged in December at 16. While it remains the highest reading since June, any reading below 50 indicates negative sentiment about the market. The index hasn't been above that point since April 2006. The low index reading reflects concern on the part of developers over the weak housing market. New home sales have fallen four times in the past six months. New home prices slid last month to the lowest point in seven years. Many builders slashed prices to compete with the resale home market. Builders are anticipating fewer sales in December than most years, said NAHB Chairman Bob Jones, mostly because of competition from sharply discounted foreclosed homes, tighter lending standards and poor overall job growth. December is traditionally one of the slowest times for sales. The NAHB anticipates an improving job market will help buoy consumer confidence in the spring and lift sales by then. Weak sales mean fewer jobs in the construction industry, which normally helps power economic recoveries. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the builders' trade group. The latest report reflects a survey of 416 residential developers nationwide. The index measuring current sales conditions was unchanged this month from November at 16, while the reading for sales expectations over the next six months held steady at 25. But the index for foot traffic from prospective buyers slipped one point to 11. But unlike this year, the industry isn't counting on another round of federal homebuyer tax credits. That incentive helped boost home sales earlier this year, but the market cratered this summer after the credits expired at the end of April. Several large homebuilders reported sharp annual declines in new home orders for the July-September quarter.
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#1. To: Brian S, go65, skidmark, bartdcraprules (#0)
WTF? How can that be when the economy is on the verge of turnaround....according to the Obama shills? Liberals are so full of shit. Just look at GO65, skidmark and bartcraprules.
U.S. homebuilders remain uneasy about the housing market's prospects in the months ahead
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