Homebuilder Confidence Remains at Low Levels

Washington, DC, Dec. 15, 2010 -- U.S. homebuilder confidence remained unchanged at depressed levels in December from a month earlier, according to the National Association of Home Builders/Wells Fargo index.

The index of builder confidence held at 16, matching the median forecast of economists. Readings below 50 mean more respondents said conditions were poor.

The builders group’s index of current single-family home sales held at 16 this month. The gauge of buyer traffic decreased to 11 from 12, and a measure of sales expectations for the next six months held at 25.

“The typical cold-weather slowdown in sales activity is being accentuated by ongoing weakness in the job market, the rising number of foreclosures and short-sales, and very challenging credit conditions for both builders and buyers,” NAHB Chairman Bob Jones said in a press release.

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.