US Builder Confidence Holds Steady in December

On Tuesday, the National Association of Home Builders (NAHB) reported that according to its NAHB/Wells Fargo Housing Market Index (HMI), builder sentiment in the market for newly built single-family homes held steady at a reading of 46 in December, unchanged from November. This breaks a string of three consecutive monthly increases.

The HMI survey also revealed that 31% of builders cut home prices in December, unchanged from November. Meanwhile, the average price reduction was 5% in December, the same as in November. The use of sales incentives was 60%, also unchanged.

In December, the HMI component charting current sales conditions held steady at 48, the same as in November. The component measuring sales expectations in the next six months increased 3 points to a reading of 66, the highest level since April 2022. The gauge charting traffic of prospective buyers declined 1 point to a reading of 31.

The regional breakdown (three-month moving average) is as follows:

• The Northeast increased 2 points to a reading of 57.
• The Midwest moved 2 points higher to a reading of 44.
• The South posted a 2-point gain to a reading of 44.
• The West declined 1 point to a reading of 40.