NAHB Homebuilder Survey and Wells Fargo Housing Market Index Drops to 14
Posted on | July 19, 2010 | No Comments
The NAHB homebuilders survey and Wells Fargo Housing Index fell two points to 14 for the month of July. The data for June was downwardly revised from 17 to 16. This is currently the lowest level we have seen since April of 2009. For those that do not remember the Dow Jones Industrial Average was in the 8000 range in April of 2010.
Mitchell Hochberg, a Principal Madden Real Estate Ventures in NYC, feels that “The survey shows after the collapse the patient requires further cathartic therapy to restore belief and confidence in the economy to fully recover; It’s not surprising that coming off the euphoria generated from the home buyer tax credit program and entering the slower summer selling season that builders would be discouraged.”
Yesterday we made the prediction that it would not be a surprise to see a very low number in the month of July. A low number is exactly what we are seeing and it has a great deal to do with the fact that the government is no longer offering the incentives of the first time and move up home buyers tax credits. It will definitely take some time for home builders to gain confidence without government assistance in the form of tax credits.
Author: Jesse Wojdylo
Ask Wojdylo Column – Financial, Entertainment and Sports news with a money spin.
Tags: housing market index > nahb hombuilder > nahb homebuilder survey > nahb survey > wells fargo housing > wells fargo housing market index > wells fargo survey
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