Homebuilders worry about declining sales.
By michael | June 16, 2010
June 16, 2010
WASHINGTON — Homebuilders are feeling less confident in the recovery now that government incentives for buyers have expired.
Their pessimism could drag on the economy, which may not benefit so much from the job creation that construction typically generates throughout various sectors.
The National Association of Home Builders said yesterday its housing market index fell to 17 in June, sinking five points after two straight months of increases. It was the lowest level since March.
Builders had been more optimistic earlier in the year when buyers could take advantage of tax credits of up to $8,000. Those incentives expired April 30, although buyers with signed contracts have until June 30 to complete their purchases.
Experts anticipate home sales will slow in the second half of this year. In addition, high unemployment and tight mortgage lending continue to keep many buyers on the sidelines.
John Wieland, CEO of Atlanta-based John Wieland Homes and Neighborhoods, said his company has seen a decline in sales the past two months. Consumers are nervous about the economy, especially given the stock market’s downturn in recent months, he said.
“It doesn’t give you that warm feeling that makes you want to go out and spend a couple hundred thousand dollars,” Wieland said. “It’s just an unusually uncertain time in America
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