CNN Money reports on the latest home builder confidence survey released today by the National Association of Home Builders:
The subindex measuring builders' view of current market conditions fell to the lowest level since February 1991.
. . .
The trade group cited tighter credit for potential buyers following the meltdown in the subprime mortgage sector, which sparked a flurry of cancellations in new home orders.
"The crisis in the subprime sector has infected other parts of the mortgage market as well as consumer psychology, and as a result the housing outlook has deteriorated," David Seiders, the builders' chief economist, said in a statement.
"We're now projecting that home sales and housing production will not begin improving until late this year, and we're expecting the early stages of the subsequent recovery to be quite sluggish," he added. "There still are tremendous uncertainties regarding our baseline forecast going forward, owing largely to the subprime crisis that is having widespread effects throughout the mortgage market."
7 comments:
"We're now projecting that home sales and housing production will not begin improving until late this year,
Hmmm - no Builders I work with (and I do!) have a lot of New Sales happening in Nov/Dec. This makes no sense to me at all. The Builders are busy in the production in, so they can deliver homes before the end of the year & thus "pull the numbers"
Sounds like a lot of fluff to me....
Based on the report, it shows that one in every 497 homes received foreclosure filings during the month. Five states continued to account for more than half of all filings of foreclosure. California only accounted for more than one quarter.
Current Foreclosures are a major headwind for a market that is already stressed with an excess of unsold properties. Information from Zillow Inc. showed the figure of single- family houses where the mortgage is worth more than the property raised to 27 percent in the fourth quarter from 23.2 percent the previous quarter, implying more possible foreclosures to come.
Great report well worth the read.
Thanks for sharing this superb information.
~Cape Coral Properties
According to the senior vice president of RealtyTrac, it suggests the system is still frozen up. We should have seen a much bigger raise in both overall activity and bank repossession.
The quantity of foreclosure filings, which includes default notices, planned biddings and bank repossessions, rose one percent to 261,333 in January. Filings are down 17 percent compared to January last year.
~Cape Coral Rental Management
High rate of unemployment together with high housing accounts will continue to lessen the value of distressed properties in the coming year in several markets according to a practice leader of banking and securities industry. Lots of experts are confident that 2012 will bring about developments in the distressed market condition.
~Las Vegas Luxury Homes
Interesting comment Paige, would not have thought about it that way myself.
Las Vegas Foreclosures
Excellent and insightful site. Great info, thank you very much for sharing!
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