From CNN:

Homebuilders’ confidence in the housing market again plunged to a record low, dragged down by poor financial market conditions, rising unemployment and consumer anxiety, a trade group said Tuesday.

The National Association of Home Builders (NAHB)/Wells Fargo housing market index for November fell to a seasonally adjusted reading of 9, the lowest recorded level since the index began in 1985. Economists surveyed by Thomson/IFR expected the index to remain at 14, the previous record low set in October.

A reading below 50 indicates that builders who think home-sales conditions are poor outnumber those who think the environment is positive for sales. November’s reading was the sixth record low set or matched in the past seven months.

“Today’s report shows that we are in a crisis situation,” said Sandy Dunn, NAHB chairman, in a statement. “Tremendous economic uncertainties have driven consumers from the housing market, and it’s going to take some major incentives to bring them back.”

Builders were asked for their view of the current market, the number of buyers looking at homes and expectations for six months from now.

Of the more than 400 homebuilders surveyed, nearly all - 98% - of the builders surveyed believe consumer concern about the economy was a key problem currently facing the housing market. Other issues receiving almost unanimous agreement were buyers’ inability to sell their existing homes, continued dour news about the market and tight mortgage lending conditions.

The future outlook was grim. Of the builders surveyed, 49% plan to build fewer homes in the first half of 2009 compared to the second half of 2008, while just 16% expect to build more homes. Overall, builders said they anticipate constructing 17% fewer homes in the first six months of next year compared to the last half of this year.

“This November data is downright atrocious,” said Mike Larson, analyst at Weiss Research. “If you’re looking for a glimmer of hope for the housing market, you aren’t going to find it in the latest figures.”

Atrocious is an understatement. The only way for the homebuilders to survive is to stop building homes. Oh, the catch-22.

number_nine, originally uploaded by nilson.