The news from the homebuilders isn’t looking any better. The NAHB sentiment survey in December came in matching the level of 9.0 in November. The association sees no improvement in the terms of sales or conditions from the month before. Some sectors have continued to get worse.
Homebuilders are also noting that there is almost no way to compete with the cut-rate foreclosure prices that have flooded the market in the new construction.
The NAHB said data showing present sales fell compared with the prior month. And the expectations index fell to 18 from 16, which means that builders expect even further declines in the coming six months. The traffic index of prospective buyers was steady at 7.
For a comparison, 50.0 is the pivot point for positive expectations and negative expectations. This survey was taken from more than 400 homebuilders.
The beatings continue.
Jon C. Ogg
December 15, 2008