US Builder Confidence for Newly Built Single-Family Homes Falls in July
Builder Sentiment Stays Weak as Affordability Concerns Persist
On Thursday, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder sentiment for newly built single-family homes fell 2 points to 34 in July, down from a revised 36 in June. Sentiment has remained below 40 for 15 consecutive months, the longest stretch since 2012.
The HMI survey showed that 37% of builders reported cutting prices in July, up from 35% in June. The average price reduction was 6%, unchanged from the previous month. The use of sales incentives rose to 63% from 62% in June, marking the 16th consecutive month at 60% or higher.
The HMI component measuring current sales conditions fell 1 point to 37, while the gauge of sales expectations over the next six months declined 2 points to 43. The index tracking prospective buyer traffic fell 2 points to 23.
Regional three-month moving averages showed mixed results. The Northeast rose 2 points to 45; the Midwest increased 2 points to 45; the South declined 1 point to 33; and the West fell 1 point to 26.
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