Demand trends continued to decline sharply in May, according to the latest BTIG/HomeSphere Home Builder survey.
About 53% of builders saw a year-over-year decrease in sales, the lowest in the 56-month history of the BTIG/HomeSphere survey. And, for the second straight month, year-over-year increases in traffic dipped.
The survey solicits the perspective of approximately 50-100 small and mid-sized tract homebuilders nationally about sales, customer traffic, and pricing trends. The latest survey includes data from 86 respondents.
Just 20% of builders reported year-over-year traffic growth, the lowest level since April 2020 and near the start of the COVID-19 pandemic. Comparably, 33% of builders saw traffic jump in April 2022 and 67% in May 2021.
Cancellation rates have yet to increase significantly, however.