Homebuilders' outlook getting dimmer

http://feeds.bignewsnetwork.com/?sid=836ef483cf62a0e8

Rising mortgage rates, deepening affordability issues and the retreat of investors have cut U.S. single-family homebuilders outlook.

The National Association of Home Builders/Wells Fargo Housing Market Index for June, released Monday, fell 4 points from an upwardly revised reading in the previous month to hit 42 for the latest report, its lowest mark since April 1995.

Based on historical experience, particularly the 1994-95 episode, the pronounced pattern of movement in the HMI is not inconsistent with the reasonably orderly cooling-down process we're projecting for home sales and single-family housing starts in 2006, said NAHB Chief Economist David Seiders.

We now expect new-home sales to be off by 13 percent from the record posted in 2005
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13% thats alot!!!

The growth we experienced these past few years are unsustainable. I am surprised it is not more than 13%......

IMHO all that happened was the nutballs that blew up the Techs decided to all run to real estate. When they get done blowing that up it will go back to it's normal growth pattern. The flippers will eventually get blistered. The genuine homebuyers that plan to stay put awhile will be fine.

hell I'm just now getting this one the way I like it. Sounds like if I wait a little longer the prices of materials will come down and that will allow me to make some changes we have in mind. good for me, not good for America.

Sounds like if I wait a little longer the prices of materials will come down and that will allow me to make some changes we have in mind...

do you think that you're the only one who'll be doing that...?

the home remodelling sector will probably have good times ahead.

when the new housing constructing stops the remodelers take off so his business is always good. Lots of kitchen and bath remodels where cabinets are needed.

Don't be sure the genuine homebuyer will be fine. Because it is hard for them to move and buy another house if they have a reason such as a job change and property taxes are going up. Don't forget a lot of these "genuine homebuyers" bought their homes on ARM. Which in my opinion is not a loan but rather perpetual debt and when interest rates go up, they also get screwed....

which was supposed to be a "stable" market. B.S., it started tanking last September and only rebounded slightly in the spring. Happy to be anywhere but there now.

Seems like everyone and their momma is moving to Lakota or Mason school district.

in the 80's and then back to the home building industry and finished up my working career there and I thought it would tank at any minute the whole time. I still remembered the late '70s when it did just that. It is the only thing that is holding us together today and I am sadden to read that it is going by the way of the late '70s again. What will we do?

I was planning to build my future house.

Home building boomed during the 1920s. Economist claimed it was due to the mass marketing of cars, mortgages and the ability of employees to live in the suburbs and work in the city. I'm not so sure. I think anytime there is a serious, large imbalance in the distribution of wealth, you are going to get a building boom. The rich need a place to park their money (loans) while it makes more.

Mostly in the western suburbs of St. Louis. One thing I've noticed however is that most all of them start at $750K and above, so what does that tell you?

or anything.