Home Builder Confidence Falls

The National Association of Home Builders said this month's housing market index, which tracks industry confidence, slipped by one point to 18, the first dip since June when the reading fell to 15. The index bottomed at a record-low 8 in January; the index peaked at 72 more than four years ago.

Builders also are feeling less positive about the likelihood of sales between now and the next six months and said home-shopper foot traffic has softened since September.

Starts of single-family homes have risen 34% since January after builders cut production far below the sales rate. Inventories of unsold homes have now fallen to a 16-year low.

But builders still have trouble on the supply side. It's taking a record amount of time — nearly 13 months — to sell a home after it's completed. Foreclosures and short-sales have boosted the supply of existing home on the market as well.

The dimmed outlook comes as the federal tax credit that covers 10 percent of a home price up to $8,000 for first-time buyers is set to expire. To qualify, homebuyers must complete their transactions by Nov. 30.

Congress is considering legislation that would extend the tax credit. The Senate Banking Committee and the House Ways and Means Committee are holding hearings on the topic. There are several approaches being considered; the most likely is a bill in the Senate that would simply extend the current program through June 30.

HAPPY HALLOWEEN!