Home Builders :: IIPM Editorial

All the components of the HMI index – sales, expected sales for the next six months and buyer traffic – most precariously declined to their lowest since April 1995. Commenting on this hazardous depreciation, National Association of Home Builders (NAHB), Chief Economist, David Seiders frighteningly sounded off, “We now expect new-home sales to be off by 13% from the record posted in 2005. Single family starts, supported by large builder backlogs of unfilled orders and some continuing reconstruction in the wake of last year’s hurricanes, should be down by about 9% from the 2005 record.” Well, it shouldn’t be hard for anyone to accept the fact that housing has been the anchor for the US and consequently the global economy at a time when yawning deficits and global imbalances have constantly exerted downward pressures. Housing had kept investments & consumption alive in US & OECD markets. And the most upsetting news is that dampness is clearly settling in now.

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Source: IIPM Publication, Editor: Arindam Chaudhuri