NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Michigan says:

“The home buyer tax credit did its job in stoking spring sales and we expected a temporary pull back in the builders’ outlook after the credit expired at the end of April…However, the reduction in consumer activity may have been more dramatic than some builders had anticipated, which resulted in their lower confidence levels.”</p

NAHB Chief Economist David Crowe says:

“We expected some softening in the market following the expiration of the home buyer tax credit and this report seems to verify this assumption….In the coming months, an improving economy, rising employment, low mortgage rates and stabilizing home values should help the housing market move forward. But as today’s HMI data shows, builders still remain very cautious and are aware that several factors could impede the nascent housing recovery, including serious problems in obtaining financing for the production of housing, faulty appraisal practices and competition from short sales and foreclosed properties.”
</p

This is the same thing the NAHB was saying in January.</p

HERE is some content about the above mentioned appraisal issues</p

HERE is some content about short sales, foreclosed properties, and shadow inventory</p

HERE are some of the “incentives” being pushed by Realtors and homebuilders

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