Builder confidence in the housing market remains low, especially since the federal tax credit incentives have ended.  A score below 50 means a negative outlook and this month’s number was 14 – the lowest it has been since March 2009.  According to MSNBC.com,

Builders have sharply scaled back construction in the face of a severe housing market bust. The number of new homes up for sale in May fell to 213,000, the lowest level in nearly 40 years. And, at the current sales rate, it would take 8.5 months to exhaust that supply. In a healthy economy, new home inventory takes about six months to exhaust.

The good news is builders are not anticipating that the economy will fall back into a recession, but the recovery will be slow and drawn-out.