Tuesday, October 16, 2007

Gloomy Group

The mood is downright ugly. AP (10.16.07):
"An index that tracks developers' expectations of future home sales fell this month to a new record low, suggesting price cuts haven't yet injected a spark into the slumping market.

The National Association of Home Builders said Tuesday its housing market index, which tracks builders' perceptions of conditions and expectations for home sales over the next six months, fell two points to 18 in October, the lowest level since the index began in Jan. 1985."

Homebuilder Outlook Falls to Record Low

Readings over 50 are considered positive, so an index of 18 really blows.

Not only do new orders suck, but the jolly bankers aren't real keen on lending 'em money any more. Bloomberg (10.16.07):

"D.R. Horton Inc., the second-largest U.S. homebuilder, said orders in the fiscal fourth quarter plunged to the lowest in almost six years as customers backed out of purchases and banks restricted lending."

D.R. Horton Orders Fall to Lowest in Almost Six Years

How bad is it for the big builders? Hey, if it ain't nailed down, they're selling it for whatever they can get.



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