Home builder confidence fell this month

Home builder confidence dropped this month, according to the National Association of Home Builders/Wells Fargo Housing Market Index. .The index dropped two points to 32, its lowest mark since late 2022. Any reading above 50 shows the single-family housing market is in good shape. Thirty-seven percent of builders cut prices this month, its highest mark since the association started tracking the statistic three years ago. The index tracking current sales conditions fell two points this month to 35, while the measurement of sales expectations for the next six months fell two points to 40. The gauge tracking prospective buyer traffic dropped two points to 21, its lowest reading since November 2023. “Rising inventory levels and prospective home buyers who are on hold waiting for affordability conditions to improve are resulting in weakening price growth in most markets and generating price declines for resales in a growing number of markets,” said NAHB Chief Economist Robert Dietz. “Given current market conditions, NAHB is forecasting a decline in single-family starts for 2025.”Housing numbers fell in May, according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development. Privately-owned housing units authorized by building permits fell 2 percent to 1.39 million from 1.42 million. Single-family authorizations fell 2.7 percent to 898,000 from 923,000 in April. Other report findings included:Privately-owned housing starts fell nearly 10 percent to 1.25 million from 1.39 million in April. Single-family housing starts increased 0.4 percent to 924,000 from 920,000 the previous month. Privately-owned housing completions increased 5.4 percent to 1.52 million from 1.44 million in April, but were still 2.2 percent below the May 2024 rate of 1.56 million. Single-family housing completions increased 8.1 percent to 1.02 million from 950,000 in April.