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Tuesday, September 18, 2007

NAHB: Builder Confidence Falls to Record Low in September

by Calculated Risk on 9/18/2007 01:00:00 PM

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The NAHB reports that builder confidence fell to 20 in September, from 22 in August. This ties the record low of 20 in January 1991.
NAHB Housing Market Index

NAHB Press Release: Builder Confidence Continues Downward In September
Concerns about the substantial inventory of new homes for sale and the effects that deepening mortgage market problems are having on buyer demand caused builder confidence to decline for a seventh consecutive month in September, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI dropped two points to 20, tying its record low reached in January of 1991 (the series began in January 1985).
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Two out of three component indexes declined in September. The index gauging current single-family home sales declined two points to 20, while the index gauging sales expectations for the next six months fell five points to 26. The index gauging traffic of prospective buyers held steady at 16 for the month.

All four regions of the country reported declines in their September HMI readings. The Northeast posted a three-point decline to 26, while the Midwest posted a single-point decline to 13, the South posted a two-point decline to 22, and the West posted a four-point decline to 18.