US housebuilder confidence at an all time low

The US economy takes another battering after the latest stats reveal that US housebuilder confidence is at an all time low, as a recent report has shown that consumer sentiment is at its lowest ebb for four months through to October.

The National Association of Home Builders/Wells Fargo index fell three points to 14 in October which represents a new all time low by 2 points.

The lack of confidence in the housing market means that housebuilders are finding it increasingly difficult to attract buyers into new builds as the number of foreclosures is ever increasing, meaning that the stockpile of homes is ever increasing whether or not building continues.

This now means that the US has experienced a housing slump for the fourth successive year and this is likely to have a knock on effect on economic growth into 2009. Although it is predicted that the worst of the credit crunch has yet to be felt, meaning that the worst months are likely still to come.

Sentiment around the country is low, with the Northeast falling by 4 points to 17, with the West being the hardest hit as it fell by three points to 10.

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