It’s good news that U.S. homebuilder confidence is at a record low score of 18. Western U.S. homebuilders scored 14.
Builder confidence in the market for new single-family homes was further shaken in October due to continuing problems in the mortgage market, substantial inventories of unsold units and the perceived effect that negative media coverage is having on potential buyers… The HMI fell two more points to 18 in October, its lowest point since the series began in January of 1985.
In a related article on Inman News (subscription) I think I see the problem.
While builders have slashed new-home production, “inventories of new homes for sale are hardly off their 2006 highs and the months’ supply actually has moved up to a cyclical high,” Seiders stated in the report. [my emphasis]
The U.S. homebuilders are not fast learners.