NAHB index falls again
* The overall index slumped to 33 this month from 36 in March. That missed forecasts for a reading of 35. It was also down substantially from a reading of 51 in April 2006.
* All three sub-indices declined. An index measuring present sales dropped 3 points, while an index measuring expectations about futures sales fell by a hefty 6 points. The index measuring prospective buyer traffic dipped 1 point.
Clearly, this is not a good sign for the housing industry. We are now in the midst of the spring home buying season, and most indicators of housing demand and housing supply are heading in the wrong direction. I've been saying for a while that we wouldn't get a lasting recovery in the housing market until at least 2008. This latest reading only confirms my pessimism.