Home builder sentiment crashes to new lows

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Builder confidence in the market for newly built single-family homes fell two points to 35 in June.

Here are the readings for the three HMI indices in June:

  • Current sales conditions fell two points to 38.
  • Sales expectations in the next six months held steady at 45.
  • Traffic of prospective buyers remained unchanged at 25.

Signs of Market Cooling

The latest HMI survey also revealed that 35% of builders cut prices in June, up from 32% in May. The average price reduction was 6% in June, the same rate as the previous month. The use of sales incentives was 62% in June, up slightly from 61% in May, and marking the 15th consecutive month this share has reached 60% or higher.

NAHB official release: https://www.nahb.org/news-and-economics/housing-economics/indices/housing-market-index

 

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