Each month, the National Association of Home Builders conducts a survey of builders to determine how confident they are in the market for newly built single-family homes. Their responses are scored on a scale where any number above 50 indicates more builders view conditions as good than poor. In November, the NAHB’s Housing Market Index rose one point to 38. Buddy Hughes, NAHB’s chairman, says buyers remain hesitant. “While lower mortgage rates are a positive development for affordability conditions, many buyers remain hesitant because of the recent record-long government shutdown and concerns over job security and inflation,” Hughes said. “More builders are using incentives to get deals closed, including lowering prices, but many potential buyers still remain on the fence.” The NAHB’s survey found 41 percent of home builders reported cutting prices in November – a record high in the post-COVID era. The share of builders who say they’ve used sales incentives remained at 65 percent. (source)
