Many who use construction equipment to make a buck were not as confident in their ability to do so with the current economic conditions, according to a recent report.
The National Association of Home Builders and Wells Fargo said that builder confidence saw its first decline in two months, falling to 17 in May. A number lower than 50 on the firms' Home Builder Index indicates more builders feel conditions are poor for the sale of new single-family homes.
The decline in the index is associated with the end of a tax credit for first-time and repeat homebuyers. The former were eligible for as much as $8,000, while the latter could have earned up to $6,500 as a result of their purchase.
However, homebuyers had to reach an agreement on a contract for a purchase by April 30. Bob Jones, NAHB chairman, said many thought the end of the credit would probably reduce sentiment among builders.
"However, the reduction in consumer activity may have been more dramatic than some builders had anticipated, which resulted in their lower confidence levels," Jones said.
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