Thursday, June 16, 2011

The Real Estate Bloggers

The Real Estate Bloggers

June Builder Confidence Report Drops From 16 to 13

Posted: 15 Jun 2011 11:36 AM PDT

Upside-down-houseIt is hard to have a significant drop in the builders index. It was sitting at a score of 16 out of 100 in May having been stuck in a very narrow range of despair over the past couple of years.

But the recent increase in material costs and lack of demand sent the index down 3 points to 13, just barely above the level of complete panic…

Folks, builders have no where to turn until the economy picks up. When the press release reads like this you know there is no joy at the National Association of Home Builders:

“Builders are being squeezed by the continuing weakness in existing-home prices – against which they must compete — as well as rising material costs,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. “In addition to the ongoing impacts of distressed property sales on home prices, appraisal values and consumer confidence, rising costs for materials such as roofing, copper, wallboard, vinyl siding and other components have made it extremely difficult to construct a new home and sell it at a price that covers the costs.”

“Builder confidence has waned even further as economic growth has stalled, foreclosures have continued to hit the market and the cost of building a home has risen,” agreed NAHB Chief Economist David Crowe. “Meanwhile, potential new-home buyers are being constrained by difficulty selling their existing homes, stringent lending requirements, and general uncertainty about the economy. Economic growth must pick up in order for housing to gain the momentum it needs to get back on track.” via the NAHB Press Release

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June Builder Confidence Report Drops From 16 to 13

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