US Builder Confidence for Newly Built Single-Family Homes Falls in June
Builder Sentiment Remains Weak Amid Affordability Concerns
On Monday, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder sentiment for newly built single-family homes fell to 35 in June, down 2 points from May. Sentiment has now remained below 40 for 14 consecutive months, a streak not seen since 2011–12 during the foreclosure crisis.
The HMI survey showed that 35% of builders reported cutting prices in June, up from 32% in May. The average price reduction was 6% in June, unchanged from the previous month. The use of sales incentives was 62%, up from 61% in May, marking the 15th consecutive month this share reached 60% or higher.
The HMI component measuring current sales conditions fell two points to 38, while the gauge of sales expectations over the next six months held steady at 45. The index tracking prospective buyer traffic was unchanged at 25.
Regional three-month moving averages showed mixed results. The Northeast rose two points to 44; the Midwest was unchanged at 43; the South declined two points to 33; and the West fell one point to 27.
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