The current sales conditions gauge slipped two points to 15, while the sales expectations measure for the next six months fell three points to 24. Traffic of prospective buyers dropped to a one-year low; so much for the homebuyer tax credit.
Once again, the WEATHER EXCUSE: Unusually poor weather conditions certainly had a negative effect on builders’ business in February,” said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich. “At the same time, the continual flow of distressed properties priced below the cost of production is having an adverse effect on new-home appraisals and also making it tough for builders’ customers to sell their existing homes.”
Anticipated excuses commencing in April likely to include:
My dog ate our sales brochures. Seriously, look I brought a stool sample. (applicable April through the end of the year)
Our April housing inventory was being fumigated given the fact they were closed up tight all winter and we didn't want anyone to go in there and suffocate.
Also impacting our April results were buyers waited for the results of the April FOMC meeting as there was a rumor floating around that the Federal Reserve was reinstating their purchase of mortgage backed securities.
We had an unseasonably sunny June and given that "pale" is the new tan, many buyers waited for a cloudy forecast.
As a result of July 4th falling on a Sunday, the government (concerned that not everyone would have the same amount of time off), implemented a 100% paid time off program for the period 7/1/2010 through 7/5/2010. Our July results reflect the fact that many potential buyers went camping.
August results were negatively impacted as gas prices spiked over $3.00 per gallon and much of the country experienced a heat wave.
September....start over as no one remembers April and May anyway.
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