Outlook Grim For Home Builders

Home builder confidence continues to drop according to a recent study by the National Association of Home Builders (NAHB). The Housing Market Index (HMI) index has now plummeted to the lowest level since 1991.

With the lagging market and slow down of new home construction, builders are being forced to drop prices and find creative ways to lure in potential buyer as was noted by NAHB Chief Economist David Seiders "builders are actively trimming prices and offering buyer incentives to work down their inventories, but meanwhile there is a large supply of vacant existing homes on the market, and affordability problems persist despite efforts to attract buyers."

"In spite of these challenges, we expect to see home sales get back on an upward path late this year and we expect housing starts to begin a gradual recovery process by early next year. At that point, this market will be operating well below its long-term potential, providing plenty of room to grow in 2008 and beyond."

So if you're considering a new construction, keep your eyes open for enticing builder incentives (cash back, swimming pool, etc.) and home upgrades (appliances, flooring, fixtures, etc.).

Labels: real estate news

posted by B. Samii @ 8:18 AM