?EUR??,,????'??Consistent with what builders said in last month?EUR??,,????'???s survey, many are reporting that their special sales incentives are having limited success in terms of getting buyers in the door,?EUR??,,????'?? said NAHB President Brian Catalde, a home builder from El Segundo, Calif.

Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as either ?EUR??,,????'??good,?EUR??,,????'?? ?EUR??,,????'??fair?EUR??,,????'?? or ?EUR??,,????'??poor.?EUR??,,????'?? The survey also asks builders to rate traffic of prospective buyers as either ?EUR??,,????'??high to very high,?EUR??,,????'?? ?EUR??,,????'??average?EUR??,,????'?? or ?EUR??,,????'??low to very low.?EUR??,,????'?? Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.

?EUR??,,????'??The message from today?EUR??,,????'???s report is that builders do not see any significant change in housing market conditions as compared to last month,?EUR??,,????'?? said NAHB Chief Economist David Seiders. ?EUR??,,????'??While they continue to work down inventories of unsold homes and reposition themselves for the market?EUR??,,????'???s eventual recovery, they realize it will be some time before market conditions support an upswing in building activity ?EUR??,,????'??? most likely by the second half of 2008.?EUR??,,????'??

In November, the index gauging current sales conditions for single-family homes remained flat at 18, while the index gauging sales expectations for the next six months declined a single point to 25. The index gauging traffic of prospective buyers rose two points to 17.

?EUR??,,????'??The homebuilding industry is certainly picking up the impact of the credit crunch,?EUR??,,????'?? said Scott Anderson, senior economist at Wells Fargo & Co. in Minneapolis. ?EUR??,,????'??Inventories remain too high, and builders will be cutting back on construction in the months ahead.’?EUR??,,????'??

Regionally, the HMI results were mixed, with two regions reporting modest HMI gains and two reporting slight declines. The HMI for the Northeast gained one point to 27 and the HMI for the West gained three points to 18. Meanwhile, the HMI for the Midwest declined one point to 13 and the HMI for the South declined two points to 19.