home builderThe housing industry is still treading water. The National Association of Home Builders' Housing Market Index for September remained at 13, unchanged from August -- the index's lowest level since March 2009.

A Bloomberg survey had expected the index to rise to 14 this month. Readings over 50 indicate that more builders view sales conditions as good than poor. The index was at 14 in July and 16 in June. It hit an all-time low of 8 in January 2009 and an all-time high of 72 in June 2005.

Two Components Were Unchanged

Two of the index's three components remained the same in September. The component gauging current sales conditions was unchanged at 13, and the six-month sales expectations component was unchanged at 18. Meanwhile, the traffic of prospective buyers component dipped to 9 from 10 in August.

Regionally, HMI results were mixed in September, rising two points to 14 in the South, but falling two points to 16 and 12, in the Northeast and Midwest, respectively. The index was unchanged at eight in the West.

David Crowe, NAHB chief economist, said the attitude of home builders is being driven by a large supply of homes for sale -- an inventory ballooned by foreclosures -- and by sub-par U.S. job growth.

"The stall in the nation's housing market continues," Crowe said, in a statement. "Builders report that the two leading obstacles to new-home sales right now are consumer reluctance in the face of the poor job market and the large number of foreclosed properties for sale. However, we do expect that moderate improvement in the job market will help boost consumer confidence and improve conditions for new-home sales in this year's final quarter."

Housing Sector Has a Low Pulse

September's homebuilder confidence report confirms a housing market that has a pulse, but a faint one. Home builder confidence has fallen roughly in-sync with the decline in both new- and existing-home sales this summer, which followed the end of the home buyer tax credit. The latter event demonstrated that a considerable portion of home sales and builder activity was dependent on the credit.

Even so, with the 2010 campaign season in full swing and a feeling of austerity permeating Capitol Hill, Congress appears to be in no mood to renew the home-buyer tax credit for a second time. However, such inaction will likely weigh on U.S. GDP growth, if some other factor does not surface to increase home sales, given the historically important relationship between homebuilding/housing sales and U.S. economic growth.

Increase your money and finance knowledge from home

How to Avoid Financial Scams

Avoid getting duped by financial scams.

View Course »

Intro to Retirement

Get started early planning for your long term future.

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

Democrat Congress: When the going gets tough...they go shopping with America's credit card---for real estate portfolios, re-elections and something for friends who made Trillion dollar mistakes. It'll take a while for us peons to pay it off. Free markets would've let the smart buy out the foolish and the pain would've gone away much quicker.

October 01 2010 at 1:37 AM Report abuse rate up rate down Reply

3 Trillion dollars didn't give us any confidence so Democrat Congress will print a heck of a lot more until everything (homes and our wallets included) gets worthless.

October 01 2010 at 1:09 AM Report abuse rate up rate down Reply
Robert & Lisa

Cut government spending in half. If we don't, there will be death and destruction. Greece, here we come.

September 21 2010 at 7:11 AM Report abuse rate up rate down Reply

I dont blame them...Sales Tax Hotel Tax School Tax Liquor Tax Luxury Tax Excise Taxes Property Tax Cigarette Tax Medicare Tax Inventory Tax Car Rental Tax Real Estate Tax Well Permit Tax Fuel Permit Tax Inheritance Tax Road Usage Tax CDL license Tax Dog License Tax State Income Tax Food License Tax Vehicle Sales Tax Gross Receipts Tax Social Security Tax Service Charge Tax Fishing License Tax Federal Income Tax Building Permit Tax IRS Interest Charges Hunting License Tax Marriage License Tax Corporate Income Tax Personal Property Tax Accounts Receivable Tax Recreational Vehicle Tax Workers Compensation Tax Watercraft Registration Tax Telephone Usage Charge Tax Telephone Federal Excise Tax Telephone State and Local Tax IRS Penalties (tax on top of tax) State Unemployment Tax (SUTA) Federal Unemployment Tax (FUTA) Telephone Minimum Usage Surcharge Tax Telephone Federal Universal Service FeeTax Gasoline Tax (currently 44.75 cents per gallon) Utility Taxes Vehicle License Registration Tax Telephone Recurring and Nonrecurring Charges Tax Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids. We also were A Common Law Country! I have set up a place that the poor and middle class in the country can start to get some of this tax money back. It is our turn to have a piece of the action. Here is my way to get your loot back. Just google EASY STOCK CASH and click the first link. Once you get there, go right to the PENNY STOCK page to see what the rich don't want you to know.

September 21 2010 at 5:18 AM Report abuse rate up rate down Reply

YOU can BLAME the Democrats, Republicans, Illegals, Congress or whoever you want to blame______But in reality YOU are the real problem. Face Reality. YOU bought all the Imported products off the store shelves and YOU gave away the jobs and the wealth of the USA to foreign countries.

September 21 2010 at 1:42 AM Report abuse rate up rate down Reply

I cannot speak for the rest of the country but here in Florida there is still a glut of unsold spec McMansions that were built into the bubble. There is a demand for housing but it is for modest starter homes not what is sitting out there unoccupied.

September 20 2010 at 5:57 PM Report abuse +1 rate up rate down Reply

You can drive a horse to water, but you can't make him drink! No more government bailouts, please. All the last one did was prolong the agony. We have to take the medicine before things will get better.

September 20 2010 at 2:34 PM Report abuse rate up rate down Reply
1 reply to linkj1's comment
Robert & Lisa

And the medicine is to get rid of the Obama liberal agenda.

September 21 2010 at 7:09 AM Report abuse rate up rate down Reply

Subject: Get your facts right! Some people don't want to know the truth! The day the Democrats took over was not January 22nd 2009 -- it was actually January 3rd 2007. The day the Democrats took over the House of Representatives & Senate, the start of the 110th Congress. The Democratic Party controlled a majority in both chambers for the first time since the end of the 103rd Congress in 1995. "For those of you who are listening to the liberals propagating the fallacy that everything is "Bush's Fault," think about this: January 3rd, 2007 was the day the Democrats took over the Senate and the Congress: At the time: The DOW Jones closed at 12,621.77 The GDP for the previous quarter was 3.5% The Unemployment rate was 4.6% George Bush's Economic policies SET A RECORD of 52 STRAIGHT MONTHS of JOB CREATION! http://www.ontheiss/ ues.org/celeb/ George_W_ _Bush_Jobs. htm Remember the day. January 3rd, 2007 was the day that Barney Frank took over the House Financial Services Committee and Chris Dodd took over the Senate Banking Committee. The economic meltdown that happened 15 months later was in what part of the economy? BANKING AND FINANCIAL SERVICES! THANK YOU DEMOCRATS for taking us from 13,000 DOW, 3.5 GDP and 4.6% Unemployment to this CRISIS by (among MANY other things) dumping 5-6 TRILLION Dollars of toxic loans on the economy from YOUR Fannie Mae and Freddie Mac FIASCOS! (BTW: Bush asked Congress 17 TIMES to stop Fannie & Freddie - starting in 2001 because it was financially risky for the US economy). And who took the THIRD highest pay-off from Fannie Mae AND Freddie Mac? OBAMA And who fought against reform of Fannie and Freddie? OBAMA & the Democratic Congress So when some idiot tries to blame Bush REMEMBER JANUARY 3rd, 2007 THE DAY THE DEMOCRATS TOOK OVER! Bush may have been in the car but the Democrats were in charge of the gas pedal and steering wheel they were driving. Set the record straight on Bush! http://brucehough/. blogspot. com/2009/ 04/setting- record-straight- on-george- w.html "It's not that liberals aren't smart, it's just that so much of what they know isn't so." -Ronald Reagan

September 20 2010 at 2:21 PM Report abuse +4 rate up rate down Reply