Builder confidence in the United States for newly-built single-family homes fell further in June, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released on Tuesday.
The Housing Market Index (HMI) landed at 32, down from the previous month's reading of 34 and clocking in at the third lowest reading since 2012. The current sales conditions index declined by two points to 35, the sales expectations index was down by two points to 40 and the traffic of prospective buyers decreased by two points to 21.
"Rising inventory levels and prospective home buyers who are on hold waiting for affordability conditions to improve are resulting in weakening price growth in most markets and generating price declines for resales in a growing number of markets," NAHB Chief Economist Robert Dietz mentioned. "Given current market conditions, NAHB is forecasting a decline in single-family starts for 2025," he added.
