Homebuilder sentiment fell in March

Builder sentiment decreased three points to 39 in March; 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 fell three points to 43; buyer traffic dropped five points to 24; and sales expectations held steady at 47.

Twenty-nine percent of builders reported cutting prices in March compared with 26% in February. The average price discount remained at 5% in March. Fifty-nine percent of builders were using sales incentives other than price cuts to improve sales in March, which is unchanged from February.

“Construction firms are facing added cost pressures from tariffs,” said NAHB Chief Economist Robert Dietz. “Data from the HMI March survey reveals builders estimate a typical cost effect from recent tariff actions at $9,200 per home. Uncertainty on policy is also having a negative impact on home buyers and development decisions.”

Date : Jan. 01, 0001