American builders continue to struggle. The latest edition of Nation’s Building News, the official publication of the National Association of Home Builders (NAHB), reported that builder confidence receded this month. “The continual flow of distressed properties priced below the cost of production is having an adverse effect on new-home appraisals and also making it tough for builders’ customers to sell their existing homes,” said NAHB Chairman Bob Jones. Additionally, NAHB Chief Economist David Crowe said “the lack of available credit for new projects, the large number of distressed properties for sale and the continuing hesitancy of potential buyers due to the weak job market are definitely weighing on builder confidence.” On the positive side, the inventory of new homes is low and a 25% improvement in home construction is expected this year.
Posted by Greater Vancouver Home Builders’ Association
March 29, 2010