The National Association of Home Builders’ Housing Market Index is based on a monthly survey of builders. It scores builders’ answers on a scale where any number above 50 indicates more builders view conditions as good than poor. In December, the index moved one point higher to 39. Robert Dietz, NAHB’s chief economist, says builders are growing more optimistic about the future. “In positive signs for the market, builders report that future sales expectations have been above the key breakeven level of 50 for the past three months and the recent easing of monetary policy should help builder loan conditions at the start of 2026,” Dietz said. “However, builders continue to face supply-side headwinds, as regulatory costs and material prices remain stubbornly high. Rising inventory also has increased competition for newly built homes.” That, however, may be good for buyers, as it means better chances at getting a good deal. In fact, the NAHB found 40 percent of builders reported cutting prices in December. (source)
