Builder confidence unchanged for January

The index gauging sales conditions for new single-family homes rose a single point to 19 in January following a downwardly revised 18 reading in December and readings of 19 in both October and November.

Derived from a monthly survey that NAHB has been conducting for more than 20 years, the index gauges builder perceptions of current single-family home sales and sales expectations for the next six months.

Scores for each component are then used to calculate a seasonally adjusted index where any number more than 50 indicates that more builders view sales conditions as good than poor.

“Builders are taking a realistic view of the continuing housing market correction and doing what they should to get inventories under control and restore greater balance to the supply and demand equation,” noted NAHB President Brian Catalde in a news release.

The index component gauging sales expectations for the next six month shows a bit more promise, rising two points to 28. The index gauging prospective buyers rose one point to 14.

“Builders are anticipating a time when market conditions will support an upswing in building activity – most likely in the second half of 2008,” said NAHB Chief Economist David Seiders in the release. Regionally, the index results were mixed in January.

The Midwest reported a two-point gain to 17, while the Northeast showed no change at 20; the South registered a three-point gain to 23, and the West showed a five-point decline to 13.