Builder Confidence Stuck Below 40 for 14 Consecutive Months
Homebuilder sentiment fell to 35 in June, down from 37 in May and below economist forecasts, according to the National Association of Home Builders and Wells Fargo index released Monday. The decline marks the 14th consecutive month the index has remained below 40, the longest such stretch since 2011-2012. The South, which accounts for the largest share of U.S. homebuilding activity, posted its steepest drop since November 2023.
Present sales fell 2 points to 38, while future sales expectations and prospective buyer traffic held steady. Builders cited rising mortgage rates, materials costs, and regulatory barriers as primary headwinds. About 35 percent of builders reported cutting prices in June, up from 32 percent in May, and 62 percent offered sales incentives, the 15th straight month at least 60 percent have done so.
NAHB estimates the country faces a shortage of 1.2 million homes, yet builder confidence remains suppressed by financing and construction costs. Publicly traded builders have seen weak spring demand leave them with backlogs well below year-ago levels, according to Bloomberg Intelligence. Sentiment in the Northeast climbed to its highest reading since October, while the West and Midwest held flat.
The post Builder Confidence Stuck Below 40 for 14 Consecutive Months appeared first on Propmodo.
