Yesterday, the NAHB published its latest monthly update on homebuilder sentiment. The headline sentiment index continued to deteriorate falling 2 points to 32, the lowest reading since December 2022.

In the table below, we show each component of the index in addition to its month-over-month change and how they rank as a percentile of their full histories.  Indices declined for both present and future sales, resulting in each one now sitting in the bottom quartile of historical readings.  The largest declines were observed in the regional data as the Northeast experienced a bottom decile monthly decline and the South experienced a bottom 1% decline.

These latest dips in sentiment come as inventories continue to rise, especially in the South and West.  Homebuilder sentiment in both of these regions fell to their lowest levels since 2012 this month, and as shown below, these are the two regions where active listings (homes for sale) have spiked the most.

(Click on image to enlarge)

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