Homebuilder sentiment rose in January

Builder sentiment increased one point to 47 in January; 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 three points to 51; buyer traffic climbed two points to 33; and sales expectations in the next six months fell six points to 60.

Thirty percent of builders reported cutting prices in January compared with 31% in December 2024. The average price discount remained at 5% in January. Sixty-one percent of builders were using sales incentives other than price cuts to improve sales in January compared with 60% in December 2024.

“Builders are facing continued challenges for housing demand in the near-term, with mortgage rates up from near 6.1% in late September to above 6.9% today,” said NAHB Chairman Carl Harris. “Land is expensive and financing for private builders remains costly. However, there is hope that policymakers are taking the impact of regulatory hurdles seriously and will make improvements in 2025.”

Date : Jan. 01, 0001