Home builders' index falls in January

The National Association of Home Builders' sentiment index fell from 16 to 15 in January, its lowest level since June and two points below expectations, the group said moments ago.

The present situation part of the index fell one point to 15 and the outlook index remained flat at 26. The prospective buyers traffic index fell one point to 12 and was down all across the country.

"Home buying conditions have rarely been as good as they are right now, but consumers are still waiting to see significant positive signs of improvement in employment and confidence, and this is slowing buyers’ return to the market," said NAHB chief economist David Crowe. "Meanwhile, competition from foreclosed homes is also severely impacting new-home sales."

The government subsidy for new and some existing home buyers has been extended through April 30, which means it won't be until then that we get an accurate picture of the organic housing market, not propped up by government help.

-- Frank Ahrens
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