September 17, 2024

brokerforyou.com Bob Schwartz
brokerforyou.com Bob Schwartz

Recently, the National Association of Homebuilders reported that its monthly survey of builder confidence for January had dropped one point to 15 on concerns over job losses and the many foreclosed homes competing for buyers.

The index reflects a survey of 504 residential developers nationwide. Index readings below 50 indicate negative sentiment about the market. A year ago, the confidence reading was at a record low of 8. During the boom years of the past decade, it was in the 70s.

Southern California builders could benefit from a constrained supply of new housing, helping demand for new projects. However, the state’s fiscal crisis could slow the overall pace of recovery. Cutbacks in education and public services might deter potential buyers from outside California from moving to the state.

Currently, most of the activity is for lower priced houses, attracting first time buyers and investors who are jumping in for bargains.

San Diego California real estate

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