Builders' Outlook Still Gloomy

Chicago Tribune (11/20/07)The National Association of Home Builders (NAHB) reports that the index of industry confidence compiled by it and Wells Fargo & Co. held steady at 19 for the second consecutive month--the lowest level since the two organizations began keeping records 22 years ago. A score of under 50 means that a majority of respondents view conditions as unfavorable. Economists explain that mounting foreclosures in many markets are adding to the glut of homes on the selling block, which means the construction slump will continue to have a negative effect on the U.S. economy well into the new year. NAHB President Brian Catalde states, "Sales incentives are having limited success in terms of getting buyers in the door," adding that reports of declining home prices "are dissuading buyers and fueling unrealistic expectations regarding home-price discounts."