Homebuilder sentiment for single-family homes rose in December

Group 1 - Homebuilder sentiment for single-family homes in December rose one point to 39 on the National Association of Homebuilders index, which is still below the neutral level of 50, indicating negative sentiment for the entire year [1] - Current sales conditions increased one point to 42, while future sales expectations rose one point to 52, marking the only positive component, and buyer traffic remained unchanged at a low 26 [1] - Builders are facing rising material and labor prices due to tariffs, and increased inventory in the existing home market has heightened competition for newly built homes [2] Group 2 - Sentiment rose across all regions except the Northeast, which has the highest sentiment despite the decline [2] - 40% of builders reported cutting prices for the second consecutive month, a level not seen since May 2020, and the use of sales incentives reached 67% in December, the highest percentage in the post-COVID period [2][3]