The National Association of Home Builders stated that their reader base of builders sank to a new low of 14 since March of 2009. Anything below 50 signifies a negative sentiment about the housing market.
The number of foreclosed and short sale homes are a driving factor in this decrease. The Home Buyers Tax credit appears to be the only factor that was driving the recovery.
The poor job market hasn’t begun to turn around and home builders don’t expect to start building more anytime soon. Obama is supposed to make a statement on Tuesday about how the administration plans to help those losing their homes.
In May the number of new homes for sale was only 213,000 nation wide which is the lowest we have seen in 40 years. In this economy it will take an estimated 8.5 months to sell those homes compared to 6 months in a healthy economy.
It was only five years ago when it took 4 months to sell 460,000 homes. With the housing marketing on the decline it’s still wide open for savvy investors.
