WASHINGTON - February 15, 2011 – Homebuilders are not seeing a turnaround in the housing market after the worst year for new home sales in a half-century.
The National Association of Home Builders says its index of builder sentiment for February remained unchanged for the fourth straight month at 16. Any reading below 50 indicates negative sentiment about the market. The index hasn't been above that level since April 2006.
Homebuilders are struggling to compete with millions of foreclosures that are forcing home prices down. Last year was also the worst in more than a decade for sales of existing homes.
Weak sales mean fewer jobs. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the trade group.
