Magazine article Mortgage Banking

Condo Builder Confidence Declines in 4Q 2007

Magazine article Mortgage Banking

Condo Builder Confidence Declines in 4Q 2007

Article excerpt

Condominium builders reported somewhat worse market conditions in the fourth quarter of 2007 than at the same time during the previous year, according to the latest results of the Washington, D.C.-based National Association of Home Builders' (NAHB's) Multifamily Condo Market Index (MCMI).

The MCMI ended 2007 on a low note, with the component of the index tracking builder confidence in current conditions standing at 18.8--down nearly 11 points from the fourth quarter of 2006, according to NAHB.

NAHB's index is derived from a quarterly survey of multifamily builders and developers, in which responses are rated on a scale of zero to 100, with a rating of 50 generally indicating that the number of positive responses is about the same as the number of negative responses.

The component of the index that gauges current conditions in the condo market has not risen above 25 during any quarter of 2007, according to NAHB Chief Economist David Seiders.

"Given that the condo market became so overheated during the peak of the housing boom, it is not surprising that the market now continues to struggle, considering the difficulties in the mortgage sector and the fears about the economy in general," said Seiders. …

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