Decline in Builder Confidence

In March, the confidence of home builders in the U.S. market for newly built single-family homes experienced a noticeable decline. According to the National Association of Home Builders (NAHB)/Wells Fargo, the confidence index fell from 42 in February to 39 in March.

Sales Conditions and Expectations

Current sales conditions saw a decrease of 3 points to 43, while the outlook for sales in the next six months remained steady at 47. Furthermore, the traffic of potential buyers dropped by 5 points from February, landing at 24.

Price Adjustments and Sales Incentives

Amidst these challenges, 29% of builders chose to reduce home prices in March, up from 26% in February. The average price reduction held steady at 5%. Additionally, the use of sales incentives remained unchanged at 59%.