The mood among American homebuilders just got a little darker. The NAHB/Wells Fargo Housing Market Index slipped to 35 in June, down two points from May’s reading of 37, marking yet another month firmly below the 50 threshold that separates optimism from pessimism.
Builders are cutting prices and sweetening deals
In June, 35% of builders reported cutting prices, up from 32% in May. The average price reduction hit 6%. Meanwhile, 62% of builders continued offering sales incentives to buyers.
The sub-indices paint a consistent picture. Current sales conditions dropped to 38, while prospective buyer traffic sat at a dismal 25.
Why this keeps happening
