Homebuilders Are Pessimistic
The National Association of Home Builders reported that its housing market index, which gauges builders’ perceptions of conditions and expectations for home sales the next six months, remained at a record low .
The index came in at 19 in November, matching an upwardly revised reading for October, the Boston Herald reported November 19, 2007. The number for both months was at the lowest level since the index began in January 1985.
Index readings higher than 50 indicate positive sentiment.
"The trade group’s president, Brian Catalde, a builder from El Segundo, Calif., blamed the news media for the market’s troubles, asserting that media reports are 'fueling unrealistic expectations' about how far prices will fall."
There is some truth to Mr. Catalde's statement. Some people actually believe there is going to be a 40 or 50 percent decline in prices. It isn't going to happen, not a chance. People waiting for that kind of decline or anything close to that are, unfortunately, going to be living in their parents' basement for a long time.
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