Posted June 25, 2020

NAHB: Fewer builders cutting home prices as a result of the pandemic

Average price cut was 5 percent. 

In a further sign that the housing rebound is gaining momentum, fewer builders are lowering home prices as a result of the COVID-19 pandemic.

Last month’s HMI survey revealed that just 22% of builders nationwide cut prices in April 2020. This month’s survey reveals that the share of builders reducing prices to bolster sales dropped even lower in May, down to 15%. For historical context, 49% of builders cut prices in March 2008, in the midst of the last housing recession.

The chart indicates the month that builders were surveyed. Builders were asked in the June 2020 survey whether they cut prices in May and those surveyed in May were asked if they cut prices the month before in April.

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