US homebuilder confidence just hit its lowest point since 2012.
43% of builders are now slashing prices — a record. 65% are throwing in incentives to move inventory. That's 19 months in a row above 60%.
The issue isn't demand. It's affordability. People want homes. They just can't afford what's being built.
This is what happens when mortgage rates double in 18 months and home prices never corrected. Builders are stuck between high land/labor costs and buyers who are tapped out.
Eventually something breaks — either prices come down, rates fall, or we build a lot less. Right now we're in the painful middle.
43% of builders are now slashing prices — a record. 65% are throwing in incentives to move inventory. That's 19 months in a row above 60%.
The issue isn't demand. It's affordability. People want homes. They just can't afford what's being built.
This is what happens when mortgage rates double in 18 months and home prices never corrected. Builders are stuck between high land/labor costs and buyers who are tapped out.
Eventually something breaks — either prices come down, rates fall, or we build a lot less. Right now we're in the painful middle.
