PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS : NATIONAL , STATE AND LOCAL HOME BUILDING INDUSTRY NEWS

Builder sentiment fell sharply in February trade , uncertainty over the scale and scope home sales and sales expectations for the over concerns on tariffs , elevated mortgage of tariffs has builders further concerned next six months as “ good ,” “ fair ” or “ poor .” rates and high housing costs . about costs ,” said NAHB Chief Economist The survey also asks builders to rate traffic Builder confidence in the market for newly Robert Dietz . “ Reflecting this outlook , of prospective buyers as “ high to very high ,” built single-family homes was 42 in builder responses collected prior to a pause “ average ” or “ low to very low .” Scores for February , down five points from January and for the proposed tariffs on goods from each component are then used to calculate the lowest level in five months , according to Canada and Mexico yielded a lower HMI a seasonally adjusted index where any the National Association of Home Builders reading of 38 , while those collected after the number over 50 indicates that more builders ( NAHB )/ Wells Fargo Housing Market Index announced one-month pause produced a view conditions as good than poor . ( HMI ) released today . score of 44 . Addressing the elevated pace All three of the major HMI indices posted

“ While builders hold out hope for prodevelopment policies , particularly for housing cost curve to enable adding more current sales conditions fell four points to

of shelter inflation requires bending the losses in February . The HMI index gauging regulatory reform , policy uncertainty and attainable housing .”

46 , the component measuring sales cost factors created a reset for 2025

The latest HMI survey also revealed that expectations in the next six months plunged expectations in the most recent HMI ,” said 26 % of builders cut home prices in

13 points to 46 , and the gauge charting NAHB Chairman Carl Harris , a custom February , down from 30 % in January and traffic of prospective buyers posted a threepoint decline to 29 . home builder from Wichita , Kan . the lowest share since May 2024 . “ Uncertainty on the tariff front helped push Meanwhile , the average price reduction was Looking at the three-month moving builders ’ expectations for future sales 5 % in February , the same rate as the averages for regional HMI scores , the volume down to the lowest level since previous month . The use of sales incentives Northeast fell three points in February to 57 , December 2023 . Incentive use may also be was 59 % in February , down from 61 % in the Midwest moved two points lower to 45 , weakening as a sales strategy as elevated January . the West edged one-point lower to 39 and interest rates reduce the pool of eligible Derived from a monthly survey that NAHB the South held steady at 46 . home buyers .” has been conducting for more than 35

-NAHB

“ With 32 % of appliances and 30 % of years , the NAHB / Wells Fargo HMI gauges softwood lumber coming from international builder perceptions of current single-family

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