Now that the first-time home buyer tax credit program has expired, home builders are feeling less confident on the recovery of the housing market. According to the National Association of Home Builders (NAHB), home builder sentiment registered the steepest decline since November 2008 this month.

The NAHB/Wells Fargo Housing Market index, which reflects builders’ perceptions of current sales, future sales, and buyer traffic, fell five points to 17 points from May to June. While most industry experts predicted that the index will decline, they said the latest figure exceeded their expectations.

The three sub-indexes of the Housing Market Index also headed south. The gauge measuring current sales condition fell by six points to 17, registering the sharpest drop in almost four years. The figure was also said to be the lowest since March. The sales expectations index, on the other hand, dropped by four points to 23, while the buyer traffic index slid by two points to 14.

Analysts blamed the April 30 expiration of the federal tax credit program for the home builder’s low market confidence. The home buyer tax credit did its job in stoking spring sales and we expected a temporary pull back in the builders’ outlook after the credit expired at the end of April. However, the reduction in consumer activity may have been more dramatic than some builders had anticipated, which resulted in their lower confidence levels,” NAHB chairman Bob Jones said.