Home builder confidence plummeted for the 10th consecutive month in October as rising mortgage rates continued to chip away at existing homebuyer demand. Builder confidence in the new-home market fell 8 points to 38, the lowest level since 2012, excluding the historic drop at the start of the pandemic in 2020, and while buyer traffic recedes to its lowest level in a decade, economists warn that home prices could fall another 20% by early next year. Insider reports.
The median home price is already down to $436,800 from a record $466,300 this summer, and slower home sales could send prices 15% to 20% lower over the coming months, though markets that were booming throughout the pandemic could see even more disproportionate losses in the near future.
“While some analysts have suggested that the housing market is now more balanced, the truth is that the homeownership rate will decline in the quarters ahead as higher interest rates and ongoing elevated construction costs continue to price out a large number of prospective buyers,” says NAHB chief economist Robert Dietz.
Advertisement
Related Stories
Design
See Interior Designer Bobby Berk's Latest Collaboration With Tri Pointe Homes
In an exclusive video for Pro Builder, interior design expert and Emmy-winning TV host Bobby Berk introduces his latest designs for Tri Pointe Homes
Forty Under 40
2024 Forty Under 40 Nomination Form
Help us recognize the rising stars, innovators, and game-changers in the housing industry!
Market Data + Trends
Housing Market Index Shows Builder Sentiment Continues to Rise
In March, builder confidence in the market for newly built single-family homes hit its highest level since July 2023
