Thursday, September 30, 2010

AS HOMEBUILDER CONFIDENCE STAGNATES, DEALS ABOUND

Home builder confidence held firm this month, according to the National Association of Home Builders’ monthly Housing Market Index. September’s reading of 13 equaled a 17-month low.
The HMI is on a 1-100 scale. A value of 50 or better indicates “favorable conditions” for home builders.
Broken down, the Housing Market Index is actually a weighted composite of 3 separate surveys which measures current single-family sales; projected single-family sales; and foot traffic of prospective buyers.
None of the 3 September surveys improved from August:
  • Single-Family Sales : 13 (unchanged from August)
  • Projected Single-Family Sales : 18 (unchanged from August)
  • Buyer Foot Traffic : 9 (from 10 in August)
Builder confidence is lower in 2010 than at any point in recorded history.

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