Builder Confidence Declines in March

Washington, DC, March 16, 2010--Homebuilder confidence declined unexpectedly  in March, according to the National Association of Home Builders/Wells Fargo index.

The index dropped to 15 this month from 17 in February, and a reading below 50 means most respondents view conditions as poor.

The report showed traffic of prospective buyers dropped to a one-year low, indicating an extension of a tax credit for purchases is sparking little interest.

Projections of record foreclosures this year, a lack of job growth and an end to Federal Reserve purchases of mortgage-backed debt are hurdles for the real estate market.

The confidence survey asks builders to characterize current sales as “good,” “fair” or “poor” and to gauge prospective buyers’ traffic. It also asks participants to gauge the outlook for the next six months.

The group’s index of current single-family home sales declined to 15 in March from 17 the prior month.

The gauge of buyer traffic fell to 10 in March, the lowest level in a year, from 12. A measure of sales expectations for the next six months decreased to 24 this month, the weakest reading since April 2009, from 27 in February.