Builder confidence in the market for newly-built single-family homes was 46 in December, the same reading as November, according to the National Association of Home Builders /Wells Fargo Housing Market Index.
“While builders are expressing concerns that high interest rates, elevated construction costs and a lack of buildable lots continue to act as headwinds, they are also anticipating future regulatory relief in the aftermath of the election,” NAHB Chairman Carl Harris said in a statement. “This is reflected in the fact that future sales expectations have increased to a nearly three-year high.”
The HMI survey found 31% of builders cut home prices in December, unchanged from November. The average price reduction was 5% in December, the same rate as in November.
Index levels below 50 indicate more builders view market conditions as “poor” than “good.”
Read the full report here.
