US homebuilder confidence at new low in November

18 November 2008 19:44  [Source: ICIS news]

TORONTO (ICIS news)--US home builder confidence in the market for newly built single family homes fell to a new low in November amid worsening financial markets, job market weakness and uncertainty about the economy, the National Association of Home Builders (NAHB) said on Tuesday.

 

The association’s housing market index (HMI) fell five points to a level of nine, its lowest recorded level since the statistic was first produced in January 1985, it said.

 

The index gauges builder perceptions of current single-family home sales and sales expectations for the next six months.

 

"Today's report shows that we are in a crisis situation,” said NAHB chairman Sandy Dunn.

 

“If there's any hope of turning this economy around, Congress and the administration need to focus on stabilising housing."

 

Beyond helping to reduce foreclosures, Congress should create major incentives to bring qualified buyers back into the housing market, Dunn said.

 

Added NAHB chief economist David Crowe: "The housing downturn has already cost America three million jobs in construction and related industries, and this downward momentum cannot be stemmed without substantive government intervention."

 

Crowe called for expanded first-time home buyer tax credits and a government buy-down of mortgage interest rates for home purchasers, among other measures.

 

The US housing industry, especially construction of new single-family homes, is a crucial downstream consuming sector for chemicals manufacturers. 

 

A wide range of chemicals and derivative products is used in new home construction, including plastic pipe, insulation, paints and coatings, adhesives and synthetic fibres, among many others.

 

Chemical industry trade association American Chemistry Council (ACC) estimates that each new home built in the US involves use or installation of some $16,000 (€12,640) worth of chemicals or derivative products.

 

($1 = €0.79)

 

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By: Stefan Baumgarten
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