AWI e-briefs - 10/07/2010 (Plain Text Version)

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Builder Confidence Unchanged in September

Builder confidence in the market for newly built, single-family homes held unchanged in September from the previous month's low level of 13, according to the latest National Association of Home Builders (NAHB) /Wells Fargo Housing Market Index (HMI), released on September 20. Why has confidence stalled?

"Builders report that the two leading obstacles to new-home sales right now are consumer reluctance in the face of the poor job market and the large number of foreclosed properties for sale. However, we do expect that moderate improvement in the job market will help boost consumer confidence and improve conditions for new-home sales in this year's final quarter," NAHB Chief Economist David Crowe said.

About the NAHB/Wells Fargo Housing Market Index
Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low."  [Return to top]