Builder Sentiment Unchanged in August

Washington, DC, Aug. 15, 2011 -- Home builder confidence held unchanged at 15 in August, according to the National Association of Home Builders.

The NAHB/Wells Fargo Housing Market Index is still at a low level, NAHB said.

"Builders continue to confront the same major challenges they have seen over the past year, including competition from the large inventory of distressed homes on the market, inaccurate appraisal values, and issues with their buyers not being able to sell an existing home or qualify for favorable mortgage rates because of overly tight underwriting requirements," said Bob Nielsen, NAHB chairman and a home builder from Reno, Nev.

He noted that 41% of respondents to a special questions section of the HMI indicated they had lost sales contracts due to buyers' inability to sell their current homes.

"The uncertain economic climate and concerns about job security are discouraging many potential buyers from exploring a home purchase at this time," said NAHB Chief Economist David Crowe.

"While buying conditions are very favorable in terms of prices, interest rates and selection, consumers are worried about what the future will bring, and builders are echoing those sentiments in their responses to the HMI survey."