NAHB: Builder Sentiment Flat in April

(Image courtesy of NAHB; Breakout image courtesy of Los Muertos Crew/pexels.com)

The National Association of Home Builders, Washington, D.C., found builder sentiment was flat between March and April in its NAHB/Wells Fargo Housing Market Index.

NAHB/Wells Fargo reported the metric at 51–breaking a four-month period of gains for the index. However, it still remains above the key breakeven point of 50.

“April’s flat reading suggests potential for demand growth is there, but buyers are hesitating until they can better gauge where interest rates are headed,” said NAHB Chief Economist Robert Dietz.

“With the markets now adjusting to rates being somewhat higher due to recent inflation readings, we still anticipate the Federal Reserve will announce future rate cuts later this year, and that mortgage rates will moderate in the second half of 2024,” he continued.

NAHB also noted that 22% of builders have cut home prices in April. That compares with 24% in March and 36% in December 2023. The average price reduction stayed where it has been for the past 10 months–at 6%. And, the use of sales incentives fell to 57% from April’s 60%.