NAHB index plunges to record low of 9 ... Yes I said "9"
The National Association of Home Builders just released its latest Housing Market Index. I have to tell you, this November data is downright atrocious. The details ...
* Among the subindices, the one measuring current single family home sales dropped to 8 from 14 ... the one measuring expectations about future sales held steady at 19 ... while the one measuring prospective buyer traffic fell to 7 from 11.
The credit crunch is part of the problem. But so too is the broad deterioration we've seen in the U.S. economy in recent months. Some consumers can't afford to buy homes because they can't access mortgage financing or because they have lost their jobs. Others don't want to purchase because they're worried home prices will fall further. Ultimately, it will take lower home prices, even less building activity, and an economic recovery to lay the groundwork for a lasting market rebound. But that is in the future, not the present.