The Nat’l Assoc of Home Builders sentiment survey was a weaker than expect=
ed 16, 2 pts below the estimate and down from 17 in Nov. It’s the weakest=
reading since June. Present conditions fell 1 pt to 16 and the Future out=
look fell 2 pts to 26. Prospective Buyers Traffic was unchanged for a 3rd=
month at 13. It’s apparent that the industry didn’t get much lift from th=
e extension of the home buying tax credit into the spring and begs the que=
stion of how much was the pull forward of demand when it was first initiat=
ed last spring. Also likely impacting sentiment is the still daunting comp=
etition that foreclosures present to the builders.
