The latest Housing Market Index from the National Association of Home Builders shows its measure of builder confidence rose one point in August from the month before. The index – based on a survey of builders scored so that any number above 50 indicates more builders view conditions as good than poor – rose to 35 in August. Robert Dietz, NAHB’s chief economist, says home builders are trying to lure late summer buyers. “Our latest builder survey continues to show signs of weakness in the home building market,” Dietz said. “August marked the 16th straight month that at least 30 percent of builders reported cutting prices to support demand, as well as the 16th consecutive month with the HMI below 40.” In August, 35 percent of builders said they cut prices, with an average price reduction of 6 percent. Additionally, 63 percent of home builders reported using sales incentives during the month. (source)
