US Homebuilder Mood Hits 8-Month High, Still Subdued

2025-12-15 15:09 By Luisa Carvalho 1 min. read

The NAHB/Wells Fargo Housing Market Index in the US inched up to 39 in December 2025, the highest in eight months, from 38 in November, while analysts expected it to remain steady at 38.

Still, the index stayed below the 50 threshold for the 20th consecutive month, as builders contend with higher construction costs, economic and tariff risks, and muted buyer demand due to affordability concerns.

Current sales conditions edged up one point to 42, the index measuring future sales rose one point to 52 and the gauge charting traffic of prospective buyers held steady at 26.

In a further sign of ongoing challenges for the housing market, the latest survey also revealed that 40% of builders reported cutting prices in December, marking the second consecutive month the share has been at 40% or higher since May 2020.

The use of sales incentives was 67% in December, the highest percentage in the post-Covid period.



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