Foreclosures Weigh on Homebuilders' Outlook

U.S. homebuilders' confidence remained stuck at a low level in May as the battered housing market lingered in the doldrums.

The National Association of Home Builders said Monday its housing market index was unchanged at 16 this month as expectations for single-family sales over the next six months fell, while traffic from potential buyers and current sales inched up. The index has been at that level for six of the past seven months. Readings at fifty and above indicate a positive view of the market.

Homebuilders are fretting about competition from foreclosures and other distressed properties as well as proposals to scale back government support for housing, said Bob Nielsen, a homebuilder from Reno, Nev., and the group's chairman.

He said "many builders in this month's survey cited high gas prices as a further contributor to consumer anxiety and reluctance to go forward with a home purchase."

Read Full Article from Wall Street Journal

- Posted: 2011-05-16 10:48:41

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