Builder Confidence Unchanged In November

December 8, 2009

Builder confidence in the market for newly built, single-family homes remained at 17 in November, unchanged from October, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The component gauging home sales expectations for the next six months rose two points in November to 28, compared with October. Many of the responses to the HMI were received prior to congressional action to extend and expand the federal tax credit for home buyers.

In a special questions section of the HMI survey, one-third of respondents indicated they have recently lost sales due to low appraisal values, up from one-quarter of respondents who indicated as much in a survey taken in July. Builders report that low appraisal values often are tied to the use of foreclosed and distressed properties as "comps" in the appraisal process.

source: C.A.R.

Posted in Real Estate