Builders’ confidence in the market for new single-family homes slipped again in November, as the National Association of Home Builders’ housing market index — a monthly gauge of builder sentiment — decreased to a record low of 9 from 14 in September, the group announced yesterday.
Thomson Reuters’ poll of economists predicted a level of 14.
“Today’s report shows that we are in a crisis situation. If there’s any hope of turning this economy around, Congress and the administration need to focus on stabilizing housing,” said NAHB chairman Sandy Dunn. “Tremendous economic uncertainties have driven consumers from the housing market, and it’s going to take some major incentives to bring them back. Beyond the work that is being done to help reduce foreclosures, Congress must immediately incorporate such incentives for qualified buyers in a new economic recovery package.”
“The housing downturn has already cost America three million jobs in construction and related industries, and this downward momentum cannot be stemmed without substantive government intervention,” said NAHB chief economist David Crowe. “Congress should consider significant consumer incentives such as expanding the first-time homebuyer tax credit and providing a government buy-down of mortgage interest rates for home purchasers. Both policies were successfully combined in the ’70s to stimulate homebuyer demand, and could get housing and the national economy moving again.”
Two of the three component indexes decreased in November, with all now at record lows. The current single-family home sales index fell to 8 from 16, while the sales expectations index for the next six months remained at 19, and the traffic of prospective buyers index declined to 7 from 11.
