Matthew Slutsky
January 20, 2010

Surprise! Builder confidence is down in the US says the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

Actually, this cannot really come as a surprise considering the housing market was juiced by government incentives that are quickly coming to an end.

The National Association of Homebuilders states:

Builder confidence in the market for newly built, single-family homes declined one point to 15 in January on continuing concerns about the poor job market and large number of foreclosed homes for sale…

The HMI edged down by a single point in three regions, with the Northeast falling to 22, the Midwest down to 11 and the South declining to 16. The HMI fell three points in the West, to 16. NAHB

Seems strange that builders just realizing – and only now losing confidence – that the housing market in the US was lifted by government incentives, and not a true housing recovery.

It is important to look at what is happening in the US, to see the potential for what could be coming to Canada as stimulus packages and incentives begin to dry up.

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