Boockvar on Homebuilding Survey
The following is from Peter Boockvar:
Quick home builder survey rundown
The September NAHB home builder sentiment index fell by 3 pts m/o/m to just 32, 18 pts below the 50 breakeven. The estimate was 34. The Present Situation dropped 4 pts to 35 while the Future Outlook declined by 6 pts to 37. Prospective Buyers Traffic held at 23 for a 3rd month.
On the demand side, the NAHB said “Buyer traffic has weakened across much of the country, largely because of rising mortgage rates.”
From the builder side, “Builders also continue to face higher material costs, rising gas and diesel prices and persistent labor shortages. In some markets, builders report that increased immigration enforcement is discouraging legal workers from reporting to job sites” said the NAHB.
And what are builders doing to drive sales? The NAHB “found that 38% of builders cut prices in September, up from 35% in August. The average price cut remained at 6% for the sixth consecutive month. Meanwhile, 66% of builders reported using sales incentives in September, up from 63% in August and the highest share since 67% posted in December.”
The housing market remains in a recession with slack demand because of price and mortgage rate challenges at the same time the supply of existing homes is tighter in coastal markets but easing up in the Sunbelt.
Nothing market moving though a snapshot of the challenges the industry faces but something we already well know.
NAHB
Prospective Buyers Traffic
Position: None
