Homebuilders in the Dumps

Here is an article from Reuters this morning.  It looks like demand for woody ornamentals and trees will be slow to recover if you look at the outlook by US homebuilders.

WASHINGTON (Reuters) - U.S. homebuilder sentiment slipped a notch in April as home prices continued to fall in most areas of the country amid widespread foreclosures, a survey released on Monday showed.

The National Association of Home Builders/Wells Fargo Housing Market index fell to 16 from 17, leaving the index in the pessimist range for a full five years.

A reading above 50 indicates that more builders view sales conditions as good than poor. The index has not been above 50 since April 2006.

"The spring home buying season is getting off to a slow start due to persistent concerns about home values as more foreclosures seem to be hitting the market, increasingly restrictive lending requirements for home buyers and builders, and the slow pace of economic recovery," said David Crowe, the NAHB's chief economist.

WASHINGTON Mon Apr 18, 2011 10:11am EDT
(Reporting Corbett B. Daly; Editing by Chizu Nomiyama)

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