We have all heard in the media about the glut of houses that are on the market. This has lead to builders confidence dropping. That is understandable because if there are more returning to the market from foreclosures, what would be the purpose in building a new house to purchase. More than likely consumer can shop the market and find a house they like already done the way they want it. Now they are in a bargaining situation as well because they will not pay for all of those initial costs when you are building a house. Also if they are purchasing from the bank, they could purchase it for a lower amount. I can see those different factors reducing builder confidence.
