Builder sentiment decreased two points to 32 in June; anything below 50 is considered negative for the National Association of Home Builders’ monthly survey, according to NAHB. It reached a record high of 90 in November 2020.
Regarding the three components of the homebuilder index, current sales conditions fell two points to 35; buyer traffic decreased two points to 21; and sales expectations fell two points to 40.
Thirty-seven percent of builders reported cutting prices in June compared with 34% in May and 29% in April. The average price discount remained at 5% for the month. Sixty-two percent of builders were using sales incentives other than price cuts to improve sales in June, which is up from 61% in May.
“Buyers are increasingly moving to the sidelines due to elevated mortgage rates and tariff and economic uncertainty,” said NAHB Chairman Buddy Hughes. “To help address affordability concerns and bring hesitant buyers off the fence, a growing number of builders are moving to cut prices.”
