The May Nat’l Assoc of Home Builders index is 16, up two pts from April
but in line with expectations and is now 8 pts off the record low and at
the highest level since Sept. Both Present and Future expectations rose
while Prospective Buyers Traffic remained unchanged, with the biggest %
increase in the West where most of the foreclosures are occurring and
has been the biggest competitive threat to the builders. Tax incentives
were likely a help as for example California initiated a $10,000 tax
credit for home buyers of new homes ONLY. There is also a federal tax
credit of $8,000 for first time buyers and the California state credit
can be combined with this.
