Builder confidence in the market for newly built single-family homes slipped back one point to 16 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for April. The index has held at 16 for five of the last six months.
"While builders in some areas are starting to see a pickup in traffic of prospective home buyers, many consumers remain skittish about the health of the housing market and overall economy, particularly in view of recent legislative and regulatory proposals that could make it much harder to get a mortgage," said NAHB Chairman Bob Nielsen. "Builders are competing against a large number of foreclosed and distressed properties on the market, which are holding down prices and appraisals and making it tough for potential clients to sell their existing homes."
The HMI's current sales conditions indicator fell one point to 16, and the prospective traffic indicator rose one point to 13. The component gauging sales expectations in the next six months fell three points to 23, its lowest mark since October 2010. Any number over 50 indicates that more builders view sales conditions as good than poor.
