After years of resilience, homebuilders are now grappling with a sharp slowdown in the housing market as high prices, mortgage rates and economic uncertainty dampen buyer demand. New home sales fell 14% in May, and many builders, including Lennar and KB Home, are cutting prices and scaling back development plans amid rising unsold inventory. Despite increased supply from both new and existing homes, sales remain sluggish in most markets.
According to Yahoo Finance, “Consumers grew increasingly apprehensive about the economy and rising geopolitical tensions, driving consumer confidence to a 13-year low. As a result, the housing market cooled,” KB Home President and COO Robert McGibney said Monday on a call to discuss earnings.
