WASHINGTON — Homebuilders are feeling less confident in the recovery now that government incentives for buyers have expired.
Their pessimism could drag on the economy, which may not benefit so much from the job creation that construction typically generates throughout various sectors.
The National Association of Home Builders said Tuesday its housing-market index fell to 17 in June, sinking five points after two straight months of increases. It was the lowest level since March.
Builders had been more optimistic earlier in the year when buyers could take advantage of tax credits of up to $8,000. Those incentives expired on April 30, though buyers with contracts have until June 30 to complete their purchases.
Experts anticipate home sales will slow in the second half of this year. In addition, high unemployment and tight lending continue to keep many buyers on the sidelines.
John Wieland, chief executive of Atlanta-based John Wieland Homes and Neighborhoods, said his company has seen a decline in sales the past two months. Consumers are nervous about the economy, especially given the stock market’s downturn in recent months, he said. The Associated Press
