NAHB Housing Index Dips to 15 in Jan.

Builders’ confidence in the market for new single-family homes slipped in January, as the National Association of Home Builders’ housing market index fell to 15, its lowest point since June, from December’s 16, the group announced yesterday.

Thomson Reuters’ poll of economists predicted a level of 17.

“At this point, home builders have done everything we possibly can to set the stage for a housing recovery — we’ve thinned our inventories, we’ve kept new construction to a minimum, and we’ve fought for and achieved a great new buying incentive with the extension and expansion of the home-buyer tax credit,” said NAHB chairman Joe Robson.

“We stand poised and ready to deliver new homes as soon as our customers are ready to take advantage of the tax credit and other historically good buying conditions in terms of interest rates, selection, and prices,” he continued. “Yet builders also realize that factors beyond our control — including consumer concerns about job security and competition from foreclosed homes on the market — are still impeding demand for new homes at this time.”

“Home-buying conditions have rarely been as good as they are right now, but consumers are still waiting to see significant positive signs of improvement in employment and confidence, and this is slowing buyers’ return to the market,” said NAHB chief economist David Crowe.

“Meanwhile, competition from foreclosed homes is also severely impacting new-home sales. That said, expected improvement in the job market this spring will help propel the housing recovery as we head into the prime home-buying season,” Crowe said.

The current sales index dipped to 15 from 16, and the traffic of prospective buyers index declined to 12 from 13. The sales expectations index for the next six months was flat at 26.

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