A decline in demand for new housing is observed in the US market. This leads to the fastest rate of price reduction by developers in the last 3 years, CNBC reports, based on the National Association of Home Builders in the US.
Confidence in the construction sector is 33 points and not the best, considering that anything below 50 points is considered negative. For comparison, in July it was 41 points.
The main reason for the weakening of the housing segment this year is poor affordability conditions due to increased interest rates. In July, 38% of construction companies offering housing adjusted prices downward. For comparison, in April this percentage was much lower - 29%. On average, prices are adjusted downward by 5%.
“Should the public builders supplement mortgage rate buydowns with more outright price reductions they would likely experience a larger negative gross margin and EPS drag as they would be unlikely able to offset the margin drag with increased volumes and SG&A leverage,” said Jonathan Woloshin, real estate and lodging analyst with UBS.
A decline in the construction of single-family homes will be reported this year, as the reason for this will be the challenges related to housing affordability. The number of building permits issued has decreased by 6% since the beginning of 2025.
Detailed statistics on average property prices in Bulgaria by cities and neighborhoods can be seen HERE