Builder confidence for newly built single-family homes decreased to 32 in August, down one point from July, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
Builder sentiment has been in negative territory for 16 consecutive months, hovering at a relatively low reading between 32 and 34 since May, according to NAHB.
Index levels below 50 indicate more builders view market conditions as “poor” than “good.”
“Affordability continues to be the top challenge for the housing market, and buyers are waiting for mortgage rates to drop to move forward,” NAHB Chairman Buddy Hughes said in a statement. “Builders are also grappling with supply-side headwinds, including ongoing frustrations with regulatory policies connected to developing land and building homes.”
The HMI survey also found 37% of builders reported cutting prices in August, down from 38% in July. The average price reduction was 5% in August, the same as it’s been every month since last November.
Read the full report here.
