The NAHB/Wells Fargo Housing Market Index dropped from 17 points in November to 16 in December, as home builders continue to be worried about the strength of sales for newly-built, single-family homes. The mark of 16 is the lowest point reported for the HMI since June of this year.
David Crowe, chief economist for the NAHB, said that recovery in the market is, as expected, going to be "bumpy."
"While some families may be just starting to factor the expanded tax credit into their potential home buying plans, many are hesitating because of the poor economy," Crowe said.
A tax credit for first-time buyers was recently extended by the government and gives people an $8,000 incentive for purchasing their first home. The credit was extended to the end of April, though people have until the end of June to finalize the sale in order to qualify.
