As demand rebounds and home builder sentiment rises, the share of builders reducing prices fell to 30% in April, down from 36% in November, Insider reports. The average price reduction in April was 6%, unchanged from February and March, but lower than the 8% discount most builders were reporting in December.
A lack of existing inventory is forcing prospective buyers into the new-home market and boosting home builder optimism for future projects.
Although builders are still contending with shortages in material supply, the NAHB's overall homebuilder confidence reading rose to 45, as mortgage rates continue to slide down and boost demand. That's as sales expectations in the next six months increased to 50, a level not reached since June 2022.
"For the fourth straight month, builder confidence has increased due to a lack of resale inventory despite elevated interest rates," said NAHB Chairman Alicia Huey in a release. "Builders note that additional declines in mortgage rates, to below 6%, will price-in further demand for housing."
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