• Prior month 51
  • NAHB housing market index 45 vs 51 estimate and 51 last month. The 2nd weakest level of the year (January was at 44)
  • Current single home sales 51 versus 57 in April
  • Home sales over next six-months 51 versus 60 in April
  • Prospective buyers 30 versus 34 in April

Comments from NAHB Members:

  • Carl Harris, NAHB Chairman:
    • Market slowdown due to increased mortgage rates, pushing potential buyers to the sidelines.
    • Concerned about new codes requiring HUD and USDA to insure mortgages for homes built to the 2021 International Energy Conservation Code, increasing construction costs.
  • Robert Dietz, NAHB Chief Economist:
    • Lack of progress on reducing inflation has pushed long-term interest rates higher, dragging builder sentiment.
    • The need to reduce shelter inflation by constructing more attainable, affordable housing.
  • Home Prices and Sales Incentives:

    • 25% of builders cut home prices in May to boost sales, ending a four-month decline in price reductions.
    • Average price reduction held steady at 6% for the 11th straight month.
    • Use of sales incentives increased to 59% in May from 57% in April.

Looking at the three-month moving averages for regional HMI scores, the

  • Midwest increased three points to 49,
  • Northeast fell two points to 61,
  • South dropped two points to 49 and the
  • West posted a four-point decline to 43.

For the full report, CLICK HERE