Homebuilder sentiment in November sank its lowest level since January 1985, as shaken builders seek assistance from a higher power.
Homebuilder sentiment in November sank its lowest level since January 1985, as shaken builders seek assistance from a higher power.
The latest data, released by the National Association of Home Builders in Washington on Tuesday, found that builder confidence regarding sales of newly constructed single-family homes slipped 5 points to a level of 9 – the lowest level recorded since the NAHB/Wells Fargo Housing Market Index was formed in 1985.
“We are in a crisis situation,” Sandy Dunn, chairman of the NAHB, said in a statement. “If there’s any hope of turning this economy around, Congress and the administration need to focus on stabilizing housing.”
The data indicates that the worsening problems in the financial markets, rising unemployment and uncertainty about the economy continue to keep homebuyers on the sidelines, the report said.
“Tremendous economic uncertainties have driven consumers from the housing market, and it’s going to take some major incentives to bring them back,” Ms. Dunn said.
The housing downturn has cost America three million jobs in construction and related industries, David Crowe, the NAHB’s chief economist, said in a statement.
“This downward momentum cannot be stemmed without substantive government intervention,” he said.
“Congress should consider significant consumer incentives such as expanding the first-time homebuyer tax credit and providing a government buydown of mortgage interest rates for home purchasers.”
In the 1970s, similar incentives helped kick-start homebuyer demand, Mr. Crowe said.
