The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for April declined three points to 33, its lowest level since December of 2006. Declines were across the board—the Northeast showed a 1 point drop to 38, the Midwest had a 5 point decline to 22, the South went south 3 points to 37, and the West dipped 2 points to 35. Any number over 50 means more builders see sales conditions as good.
Blame was laid at the foot of the subprime mortgage industry. Those bastards!
NAHB Chief Economist David Seiders had this to say:
Indeed, the unfolding effects of this crisis have compelled NAHB to trim our forecasts of home sales and housing production for both 2007 and 2008,” he said. “While we still expect to see some improvements in housing market activity beginning later this year, the downside risks and uncertainties surrounding that forecast are considerable.
The HMI, based on NAHB’s 20 year old survey, asks builders to rate 3 areas concerning single family homes– all three areas declined as indicated: current sales (-3 pts), sales expectations for the next six months (-6 pts), and traffic of prospective buyers (-1 pt).
Source: NAHB.
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