Home builder sentiment has remained at its lowest level in more than a year amid worries on a potential home sales decline.

The National Association of Home Builders (NAHB) revealed that its monthly index of builder’s confidence remain at 13 points this September. Since March 2009, the index, which is broken down into three readings, has been at its lowest level for two straight months. According to the group, readings below 50 points suggest a negative outlook on the market.

The index measuring foot traffic from prospective home buyers, which gauges future sales, declined slightly. On the other hand, the indices measuring market expectations for the next six months and current sales conditions remained the same.

NAHB chairman and Michigan home builder said the index indicated that more and more home builders are becoming disillusioned with the housing market. “In general, builders haven’t seen any reason for improved optimism in market conditions over the past month. If anything, consumer uncertainty has increased, and builders feel their hands are tied until potential homebuyers feel more secure about the job market and economy,” he remarked.

The trade group also warned that weak home sales may affect job creation in the construction industry, which may eventually affect efforts to revitalize the sluggish economy. On average, each new home creates three jobs in a year and generates around $90,000 in taxes.

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