Housing Index at Low
Diana Heeb Bivona
The National Association of Home Builders’ (NAHB) monthly Housing Market Index (HMI)dropped from 30 in May to 28 in June. This was the lowest level since 1991. It also represents an all-time low since the organization began charting the index back in 1995.
All three components declined:
- present sales fell from 31 to 29
- six month sales went from 41 to 39
- buyer traffic slid from 23 to 22
NAHB Chief Economist David Seiders was quoted as saying, “Home sales most likely will erode somewhat further in the months ahead and improvements in housing starts probably will not be recorded until early next year. As a result, we expect housing to exert a drag on economic growth during the balance of 2007.”
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