Dim view of housing market weighs on economy

Builders have dim view of new-home sales; unlikely to hire until housing market improves

Finance.Yahoo.Com

WASHINGTON (AP) -- Optimism is in short supply among U.S. homebuilders, a sign that the depressed housing market will slow the economy's gains this year.
The outlook by builders hasn't improved since the fall, when new-home sales were in the midst of their bleakest year in a half-century.

Less home building means fewer jobs for the economy. Construction work now accounts for about 5 percent of the nation's private employment. But nearly 2 million of the roughly 14 million unemployed Americans previously worked in construction.

Analysts say the economy needs to accelerate job creation before the housing industry can fully recover. Without more jobs and higher wages, home sales will stagnate.

"We probably won't see a strong recovery in construction jobs anytime soon," said Sal Guatieri, senior economist BMO Capital Markets. "Not a lot of people are showing up to builders' lots, not even to kick the tires. We just have to wait it out."

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