Today, the National Association of Home Builders (NAHB) released their latest Housing Market Index (HMI) showing a continued pullback or flattening for all measures as home builders continue to downwardly adjusted their outlook in the wake of the home "buyer" tax credit expiration.It's important to recognize that currently each sentiment index shows notable year-over-year declines with each still sitting near the lowest levels seen in over 20 years, a testament to the significance of the latest pullback.
Further, the "buyer traffic" index is showing the weakest results pulling back some 37.5% since August of 2009 and sitting just 3 points above the lowest level ever recorded while assessments of future activity appear to be on a similar "wipe-out" trend.
The new home market will likely not resume any significant form of healthy function until the considerable overhang of inventory is cleared.
