Builders remain pessimistic over housing market

Not enough Americans are moving into new homes to make the nation's home builders any more optimistic about housing's future.

The National Association of Home Builders reported that its Housing Market Index, which tracks builder confidence in single-family home sales, held steady in September at 13, unchanged from the previous month. Scores over 50 indicate that more builders are confident in the market than are not.

Builders are concerned that not enough consumers have displayed confidence in the economy or jobs market, fueling fewer relocations and leaving many in the construction industry unable to get moving on significant home building projects.

"The stall in the nation's housing market continues," said the trade group's chief economist, David Crowe. "Builders report that the two leading obstacles to new-home sales right now are consumer reluctance in the face of the poor job market and the large number of foreclosed properties for sale. However, we do expect that moderate improvement in the job market will help boost consumer confidence and improve conditions for new-home sales in this year's final quarter."

On the other hand, builders of multifamily units and apartment buildings are growing increasingly optimistic. More Americans are moving into apartments, fueling the need for the construction of new units and driving builders' confidence in the apartment industry to heights not seen since 2007, reported the NAHB.
 

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