D
ecember’s NAHB/Wells Fargo Housing Market Index rose to 39, still below the neutral 50 mark, confirming builders see the market as weak into 2025. The index hovered in the high 30s, reflecting concerns over construction costs, policy uncertainty and affordability.

    Two‑thirds of builders offered incentives to attract buyers, underscoring the impact of elevated mortgage rates and stretched affordability. Rising costs strain margins.

    Forward‑looking data show optimism: builders’ six‑month sales expectations have stayed above 50 for three straight months, suggesting easing monetary policy could improve financing in early 2026. Expectations remain above 50, though supply‑side headwinds persist.

    Price cuts are common; 40 % of builders lowered prices in December, averaging a 5 % reduction. Sales incentives were used by 67 % of builders, the highest post‑COVID rate.

    Regionally, sentiment varied: Northeast 47, Midwest 43, South 36, West 34—all below neutral. The data suggest builders anticipate improvement, but affordability, high costs and competition keep confidence fragile as 2026 approaches. Despite these challenges, builders remain optimistic.