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Homebuilders Outlook Flat

A measure of home builders' views of the housing market declined in September for the eighth straight month, to its lowest point since February 1991, the National Association of Home Builders (NAHB) said Monday.

The NAHB's Housing Market Index, which measures builders' perceptions of new single-family home sales and near-term sales prospects, fell to 30 in September from a revised figure of 33 in August. A reading below 50 indicates that many builders see conditions as 'poor.'

Homebuilder Confidence Index Falls to 15-Year Low as Sales, Profits Sink

Confidence among U.S. homebuilders dropped to a 15-year low this month as sales slowed and profits dropped, according to a private survey released today.

The National Association of Home Builders/Wells Fargo index of builder confidence fell to 30 from a revised 33 in August, the Washington-based association said. A reading below 50 means most builders view conditions as poor. It was the eighth consecutive monthly drop in the index.

Profits are dropping at builders including KB Home and Lennar Corp. as they offer incentives such as stainless steel appliances to entice buyers. The housing slump is curbing economic growth and will let Federal Reserve policy makers keep interest rates unchanged as they meet this week, economists say.

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Existing Home Sales reported 6.33M vs. consensus 6.55M - July

Prospects for a potential stabilization in the housing market - Barron's

Barron’s says that if the downturn in the housing market bucks the Street’s opinion and stabilizes in 2007, stocks that have been taken down by investor fear may see upside in the next twelve months as some anticipate a recovery.
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Housing Starts/Building Permits

Privately-owned housing starts in July were at a seasonally adjusted annual rate of 1,795,000. This is 2.5 percent below the revised June 2006 estimate of 1,841,000.
July 2006: -2.5 % change
June 2006: -5.7 % change

New Home Sales

Sales of new one-family houses in July 2006 were at a seasonally adjusted annual rate of 1,072,000. This is 4.3% below the revised June 2006 figure of 1,120,000.
July 2006: -4.3 % change
June 2006: -0.9 % change

Construction Spending

Total construction activity for July 2006 ($1,200.0 billion) was 1.2 percent below the revised June 2006 ($1,214.2 billion). Please see our web site for further details: July 2006: -1.2 % change
June 2006: 0.4 % change