Builder sentiment increased one point to 40 in April; anything below 50 is considered negative for the National Association of Home Builders’ monthly survey, according to NAHB. It reached a record high of 90 in November 2020.
Regarding the three components of the homebuilder index, current sales conditions rose two points to 45; buyer traffic increased one point to 25; and sales expectations fell four points to 43.
Twenty-nine percent of builders reported cutting prices in April, which is unchanged from March. The average price discount remained at 5% in April. Sixty-one percent of builders were using sales incentives other than price cuts to improve sales in April, which is up from 59% in March.
“The recent dip in mortgage rates may have pushed some buyers off the fence in March, helping builders with sales activity,” said NAHB Chairman Buddy Hughes. “At the same time, builders have expressed growing uncertainty over market conditions as tariffs have increased price volatility for building materials at a time when the industry continues to grapple with labor shortages and a lack of buildable lots.”
