Builder Confidence Unchanged In November - But Looking Up!

December 2, 2007

Builder confidence for new, single-family homes remains unchanged this month, reflecting continued efforts within the industry to move inventories against a backdrop of consumer skepticism, according to the most recent National Association of Home Builders (NAHB)/Wells Fargo HMI survey for November. The HMI remained flat at 18, while the index gauging sales expectations for the next six months declined a single point to 25. The index gauging traffic of prospective buyers rose two points to 17.

"The message from today’s report is that builders do not see any significant change in housing market conditions as compared to last month," said NAHB Chief Economist David Seiders. "While they continue to work down inventories of unsold homes and reposition themselves for the market’s eventual recovery, they realize it will be some time before market conditions support an upswing in building activity — most likely by the second half of 2008."  Builders are expecting the current inventory of re-sale homes to shrink as the real estate market betters in the next few months - therefore, requiring more of their new-builds.

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