June not a happy month for builders

The National Association of Home Builders/Wells Fargo Housing Market Index found builder confidence in the housing market declined three points in June.

NAHB Chairman Bob Nielsen said builders are competing against declining existing home prices and with rising costs of materials. In addition, he said potential home buyers are struggling to sell their homes, facing stringent lending requirements, and questioning their security in the job market.

"Economic growth must pick up in order for housing to gain the momentum it needs to get back on track," Nielsen said.

The index gauges builder perceptions on current single-family home sales and sales expectations for the upcoming months, as well as traffic of prospective buyers. Each component of the index fell in June, while regionally the Northeast was the only area to post a gain in its HMI score during the month.

According to RealtyPartner, June is no exception, with 2011 potentially being the worst real estate year of the recession, according to the company's Research Reports. RealtyPartner says the housing market will continue to decline for a couple more years as home prices continue to drop, foreclosure remains many people's only option and unemployment keeps potential buyers off the market. 

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