Builder confidence in the market for newly built, single-family homes in December is unchanged from 16, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The seasonally adjusted index shows a reading over 50 when more builders view conditions as good than poor, which hasn't been the case since April 2006.
"While the HMI is adjusted for seasonal factors, the typical cold-weather slowdown in sales activity is being accentuated by ongoing weakness in the job market, the rising number of foreclosures and short-sales, and very challenging credit conditions for both builders and buyers," said NAHB Chairman Bob Jones.
The HMI comprises three components, and two out of three components remained unchanged from November, including the component gauging current sales conditions (which remained at 16) and the component gauging sales expectations in the next six months (which was flat at 25). The component gauging traffic of prospective buyers fell a single point to 11.
