The index of the American Association of housing companies has fallen to its lowest level since April 2009. Low demand, an uncertain job market and a strong mortgage market strain on the housing market. This leads to less houses for sale being offered to private buyers.
The index of the National Association of Home Builders (NAHB) decreased in July to 14 points from the previous 16 points. The previous month was revised up by one point down. Economists had expected a value of 16 points.
The reluctance to buy after the end of the tax break for apartment and home buyers seem to demand a longer break than expected to result, the union wrote in its press release. As a reason the slow recovery of the economy is headed in other areas.
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The sub-indicator of the mood on the location for home sales, expectations for the next six months, and view gave way to the building activity. An index value of less than 50 points in this case has a point to declining activity. Last, the barometer recorded in April 2006 on 50 points. In addition to a continued weak job market and tighter credit conditions for private banks in terms of house sales also makes the wide range of properties under foreclosure the apartment farmers create.
