President Trump's tariffs on imported materials have led homebuilders to estimate an average cost increase of nearly $11,000 per new home. Although builder confidence saw a marginal uptick in April, it remains below the neutral threshold. Approximately 60% of builders reported rising material prices due to tariffs, resulting in an average price hike of 6.3%. This introduces uncertainty in the housing market, especially with labor shortages and limited land availability further complicating conditions. Despite slightly lower mortgage rates, the outlook for the spring housing market appears muted as sentiment stays low.
Homebuilders estimate tariffs have raised costs by about $10,900 per home, suppressing builder sentiment and contributing to volatility in material prices.
Despite a slight improvement in builder confidence, the persistent effects of tariffs and buyer hesitance are likely to hinder the housing market's recovery.
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