As builders’ faith in the market continues to decline, more of them are decreasing home prices.
The National Association of Home Builders/Wells Fargo Housing Market Index’s measure of homebuilder confidence dropped 3 points to 46 in September. Anything less than 50 is seen negatively.
With the exception of a brief decline during the beginning of the coronavirus pandemic in 2020, that represents the ninth consecutive month of reductions and the lowest level since May 2014.
Builders have reported persistently high construction costs as well as the impact of rising borrowing rates on their industry.
It has also become more difficult for builders to reduce prices due to rising costs for land, labor, and supplies.
