US Home Builder Confidence Takes a Hit in March

In a recent announcement by the National Association of Home Builders (NAHB) and Wells Fargo, it was revealed that builder confidence for newly built single-family homes experienced a decline in March. The index fell from 42 in February to 39 in March, indicating a growing concern among builders about the current state of the housing market.

Current Sales Conditions and Future 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. However, the traffic of prospective buyers didn't fare as well, dropping 5 points from February to 24.

Price Adjustments and Sales Incentives

Amidst these challenges, 29% of builders decided to cut home prices in March, up from 26% in February. The average reduction remained consistent at 5%. Additionally, the use of sales incentives stayed unchanged at 59%.