USA property developers remain sceptical

USA property developers remain sceptical

Confidence among many USA property developers remains unstable following the slowest summer for USA home sales in more than 10 years.

The latest monthly index from the US National Association of Home Builders reveals that builders' sentiment remains low, despite improving slightly in October so far.

The index currently stands at 16. Readings below 50 indicate negative sentiment about the USA property market. The index has not been above 50 since April 2006.

On a more positive note, the outlook for USA home sales conditions did improve marginally, adding to various reports that the market is starting to show signs of improving.

Bob Jones, a home builder from Bloomfield Hills, Michigan, and the trade group's chairman, told the press: “Builders are starting to see some flickers of interest among potential buyers, and are hopeful that this interest will translate to more sales in the coming months.”

Slow job growth, high unemployment and tight credit conditions have prevented many people from buying properties. The property market ensured its worst summer in over a decade, despite the historically low mortgage rates.

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A Place In The Sun