Homebuilder confidence is lowest level in seven months.

The NAHB/Wells Fargo Housing Market Index (HMI) dropped again in March.

NAHB Key Findings March 2025

• Current sales conditions fell three points to 43.
• Sales expectations in the next six months held steady at 47.
• Traffic of prospective buyers dropped five points to 24.
• 29% of builders cut home prices in March, up from 26% in February.
• The average price reduction was 5% in March, the same rate as the previous month.
• The use of sales incentives was 59% in March, unchanged from February.

Sales incentives and price cuts are having little positive impact on traffic or purchases.

HMI Methodology

The HMI is a weighted average of the three components included in the monthly builder survey: present sales of new single-family homes, expected sales of single-family homes for the next six months, traffic of prospective buyers of new single-family homes. The weights are:

• .5920 for Present Sales
• .1358 for Expected Sales
• .2722 for Buyer Traffic

NAHB Wells Fargo Housing Market Index

Traffic, the index, and present conditions are all at dismal levels historically speaking.

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Fedthink! The Fed Is Incompetent by Design and Can’t Be Fixed

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