Homebuilders have not seen a change in the housing market after the worst year for sales of new homes in half a century.
The National Association of Home Builders said Tuesday that its index of builder confidence remained unchanged in February for the fourth consecutive month to 16 years. Any reading below 50 indicates a negative perception about the market. The index has not been above this level since April 2006.
Homebuilders are struggling to compete with millions of foreclosures that are forcing housing prices down. Last year was also the worst in more than a decade, sales of existing homes.
weak sales at home means fewer jobs. Each new house construction creates, on average, the equivalent of three jobs for a year and generates about $ 90,000 in taxes, according to trade group.
High unemployment, higher standards of banking credit and uncertainty about house prices have also kept many people from buying homes. Mortgage rates have been at the lowest levels in decades, but have since started to rise.
"The builders are telling us that some pockets of optimism had begun to emerge, but many potential buyers are interested in selling your home on the market today," said David Crowe, chief economist for the group of homebuilders.
Many analysts say the housing market is expected to show some signs of life this year, but the recovery will probably be uneven. The latest regional data showed builders are becoming more optimistic in Northeast and South and the shock in the Midwest and West. And while the hopes of improving sales of a single family now and in the next six months improved the amount of foot traffic by prospective buyers remained stable.
The real test of whether the housing market will recover in spring, when the maximum time a year for home purchase.
"It really boils down to the spring buying season," said Carl J. Riccadonna, senior U.S. economist with Global Markets Research. "There are signs we are beginning to recover from the bottom. While the floor-covering during the winter, spring to tell the story."
