Latest news with #RobertDietz
Time of India
2 days ago
- Business
- Time of India
Homebuilder sentiment in USA skids to two and half years low in June: NAHB
A gauge of U.S. homebuilder sentiment slid unexpectedly to its lowest level in two and a half years in June, with more than a third of residential construction firms cutting prices to lure buyers sidelined by high mortgage rates and economic uncertainty due to President Donald Trump's tariffs. The National Association of Home Builders/Wells Fargo Housing Market Index fell to 32, the lowest reading since December 2022, from 34 in May. Economists polled by Reuters had expected the sentiment score to improve to 36. Measures of current sales conditions, future sales expectations and buyer foot traffic all fell. On a regional basis, the Northeast posted a small rise while the South, Midwest and West all declined. "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," Robert Dietz, NAHB 's chief economist, said in a statement. "Given current market conditions, NAHB is forecasting a decline in single-family starts for 2025." Mortgage rates remain elevated. The average rate on the most popular home loan, the 30-year fixed-rate mortgage, was 6.84% last week, according to home finance firm Freddie Mac, squarely in the middle of the 6.60% to 7.04% range over the past six months. "Buyers are increasingly moving to the sidelines due to elevated mortgage rates and tariff and economic uncertainty," said NAHB Chairman Buddy Hughes, a home builder and developer based in Lexington, North Carolina. "To help address affordability concerns and bring hesitant buyers off the fence, a growing number of builders are moving to cut prices." The survey showed 37% of builders were cutting prices in June, the highest percentage since NAHB began tracking the metric on a monthly basis in 2022. That figure was up from 34% in May and 29% in April, while the average price cut held steady at 5%. The use of any kind of incentive ticked up a point to 62%.
Yahoo
3 days ago
- Business
- Yahoo
US homebuilder sentiment drops to lowest level since end of 2022
(Bloomberg) — Confidence among US homebuilders fell to the lowest level since December 2022 in June, with potential buyers deterred by high mortgage rates and anxiety about tariffs and the economy. Security Concerns Hit Some of the World's 'Most Livable Cities' As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space As American Architects Gather in Boston, Retrofits Are All the Rage How E-Scooters Conquered (Most of) Europe Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown A gauge of market conditions from the National Association of Home Builders and Wells Fargo slipped 2 points to 32 this month. Economists expected 36 in a Bloomberg survey. All three of the overall index's components declined, with a measure of present sales falling to the lowest level since 2012. Gauges of traffic of prospective buyers and expected sales over the next six months are both at the lowest point in more than a year, NAHB data show. The trade association is forecasting a decline in single-family starts this year, given weakening conditions, NAHB Chief Economist Robert Dietz said in a prepared statement. To entice reluctant buyers, builders have increasingly relied on sales incentives and discounts. The share of respondents reporting cutting prices in June rose to 37%, the highest since NAHB started tracking it monthly in 2022. '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,' Dietz said. Builders anticipate that President Donald Trump's tariff policies could boost construction costs by almost $11,000 a home, based on a previous NAHB survey. And, while the supply of previously owned homes is growing and helping would-be buyers, it's also providing more competition to the new-home industry. Around the US, builder confidence in the South, the biggest homebuilding region, slipped to its lowest level since 2012. The government's monthly report on US housing starts will give another look at the new-home market on Wednesday. —With assistance from Chris Middleton. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software US Allies and Adversaries Are Dodging Trump's Tariff Threats ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
3 days ago
- Business
- Reuters
US homebuilder sentiment skids to 2-1/2-year low, NAHB says
June 17 (Reuters) - A gauge of U.S. homebuilder sentiment slid unexpectedly to its lowest level in two and a half years in June, with more than a third of residential construction firms cutting prices to lure buyers sidelined by high mortgage rates and economic uncertainty due to President Donald Trump's tariffs. The National Association of Home Builders/Wells Fargo Housing Market Index fell to 32, the lowest reading since December 2022, from 34 in May. Economists polled by Reuters had expected the sentiment score to improve to 36. Measures of current sales conditions, future sales expectations and buyer foot traffic all fell. On a regional basis, the Northeast posted a small rise while the South, Midwest and West all declined. "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," Robert Dietz, NAHB's chief economist, said in a statement. "Given current market conditions, NAHB is forecasting a decline in single-family starts for 2025." Mortgage rates remain elevated. The average rate on the most popular home loan, the 30-year fixed-rate mortgage, was 6.84% last week, according to home finance firm Freddie Mac, squarely in the middle of the 6.60% to 7.04% range over the past six months. "Buyers are increasingly moving to the sidelines due to elevated mortgage rates and tariff and economic uncertainty," said NAHB Chairman Buddy Hughes, a home builder and developer based in Lexington, North Carolina. "To help address affordability concerns and bring hesitant buyers off the fence, a growing number of builders are moving to cut prices." The survey showed 37% of builders were cutting prices in June, the highest percentage since NAHB began tracking the metric on a monthly basis in 2022. That figure was up from 34% in May and 29% in April, while the average price cut held steady at 5%. The use of any kind of incentive ticked up a point to 62%.
Yahoo
3 days ago
- Business
- Yahoo
US homebuilder sentiment skids to 2-1/2-year low, NAHB says
(Reuters) -A gauge of U.S. homebuilder sentiment slid unexpectedly to its lowest level in two and a half years in June, with more than a third of residential construction firms cutting prices to lure buyers sidelined by high mortgage rates and economic uncertainty due to President Donald Trump's tariffs. The National Association of Home Builders/Wells Fargo Housing Market Index fell to 32, the lowest reading since December 2022, from 34 in May. Economists polled by Reuters had expected the sentiment score to improve to 36. Measures of current sales conditions, future sales expectations and buyer foot traffic all fell. On a regional basis, the Northeast posted a small rise while the South, Midwest and West all declined. "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," Robert Dietz, NAHB's chief economist, said in a statement. "Given current market conditions, NAHB is forecasting a decline in single-family starts for 2025." Mortgage rates remain elevated. The average rate on the most popular home loan, the 30-year fixed-rate mortgage, was 6.84% last week, according to home finance firm Freddie Mac, squarely in the middle of the 6.60% to 7.04% range over the past six months. "Buyers are increasingly moving to the sidelines due to elevated mortgage rates and tariff and economic uncertainty," said NAHB Chairman Buddy Hughes, a home builder and developer based in Lexington, North Carolina. "To help address affordability concerns and bring hesitant buyers off the fence, a growing number of builders are moving to cut prices." The survey showed 37% of builders were cutting prices in June, the highest percentage since NAHB began tracking the metric on a monthly basis in 2022. That figure was up from 34% in May and 29% in April, while the average price cut held steady at 5%. The use of any kind of incentive ticked up a point to 62%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-04-2025
- Business
- Yahoo
Tariff tensions shake builder confidence during critical spring housing season
The spring housing season is off to a shaky start as tariff concerns rattle builder sentiment. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index rose to 40 in April, a one-point increase from March and modestly above economists' expectations of 38, according to data polled by Bloomberg. Still, a reading below 50 indicates that more builders view conditions as poor than good. "Policy uncertainty is having a negative impact on home builders, making it difficult for them to accurately price homes and make critical business decisions," NAHB chief economist Robert Dietz wrote in the press release. Builders also reported rising costs for building materials due to tariffs. Data from the National Association of Home Builders found that 60% of builders said their suppliers have already hiked prices or are planning to increase them due to trade levies. On average, suppliers have raised prices by 6.3% in response to current, enacted, or anticipated tariffs, adding an estimated $10,900 to the cost of a new home. Read more: When will housing prices drop? Homebuilders continue to navigate a complex landscape made more uncertain by unresolved trade policies with Canada, Mexico, and China. That uncertainty has put downward pressure on a gauge of sales expectations in the next six months, which fell four points to 43 in April. Still, there were some modest gains: The gauge tracking current sales conditions rose two points in April to 45, while the metric tracking prospective buyers' traffic edged up one point to 25. "The recent dip in mortgage rates may have pushed some buyers off the fence in March, helping builders with sales activity,' NAHB chairman Buddy Hughes, a homebuilder and developer from Lexington, N.C., said in the release. "At the same time, builders have expressed growing uncertainty over market conditions as tariffs have increased price volatility for building materials at a time when the industry continues to grapple with labor shortages and a lack of buildable lots," he added. Read more: What Trump's tariffs mean for the economy and your wallet Elevated mortgage rates remain another major hurdle, with some measures showing rates nearing 7%. This persistent volatility is delivering yet another blow to the housing market during the critical spring selling season. In response, builders are actively offering incentives to help sustain sales. According to the NAHB survey, 29% of builders cut home prices in April, which was unchanged from March, with an average price reduction of 5%. Meanwhile, 61% of builders used sales incentives last month, up slightly from 59% last month Dani Romero is a reporter for Yahoo Finance. Follow her on X @daniromerotv.
