Builder confidence in the market for newly built single-family homes declined two points to a reading of 35 in June 2026, according to the NAHB/Wells Fargo Housing Market Index (HMI).
Current Sales and Expectations
The index, which tracks the pulse of the single-family housing market, showed that current sales conditions fell two points to 38. While sales expectations for the next six months held steady at 45, traffic from prospective buyers remained unchanged at 25.
Rising Price Reductions Among Builders
The latest HMI survey revealed signs of a cooling market. The percentage of builders who cut prices in June rose to 35%, up from 32% in May. The average price reduction remained at 6%, matching the rate seen in the previous month.
Increased Use of Sales Incentives
Additionally, the use of sales incentives by builders was reported at 62% for June. This represents a slight increase from 61% in May and marks the 15th consecutive month that this share has reached or exceeded 60%.
Factors Influencing Market Conditions
The HMI is calculated as a weighted average of present sales, expected sales, and buyer traffic. Factors such as interest rates, employment rates, material costs, and inflationary pressures are noted as elements that can impact these housing market conditions.
