Real Estate Appraisers NAICS 531320

Mar 20, 2026 - Homebuilder Confidence Remains Low

• Home builder confidence in the single-family market rose slightly in March, but builders remain concerned about housing affordability, higher construction costs, and shortages of buildable lots and labor, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose one point to 38 in March 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The HMI survey also showed that 37% of builders reduced home prices in March to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged from February. While the war in Iran and resulting higher oil prices could pose additional challenges, recent executive orders by President Trump aimed at reducing regulatory hurdles to homebuilding are seen as a positive step.
• A growing number of homeowners are struggling to sell properties as high prices and elevated mortgage rates continue to dampen buyer demand, according to MarketWatch. The National Association of Realtors (NAR) reports that 2025 existing home sales fell to a 31-year low. In March, Google searches for “Can’t sell house” reached record highs, surpassing levels seen during the pandemic and the 2008 financial crisis. Homes are taking longer to sell, sitting an average of 8 days longer than a year ago, with well-priced homes going under contract in about 47 days and others lingering for up to 88 days, according to Redfin. Inventory is rising as new listings increased 4% in 2025, while buyers have not returned at the same pace, creating a 44% gap between sellers and buyers.

• Sales of existing US homes increased by 1.7% in February 2026 from January but were down 1.4% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "Housing affordability is improving, and consumers are responding. Still, there is a long way to go to return to pre-pandemic levels of transaction activity. There are more than 6 million more jobs than in 2019, yet home sales per year are down by one million. Despite the modest gain in home sales, actual housing demand remains muted relative to wage growth and job gains. Wage growth is now outpacing home price growth by almost four percentage points. Mortgage rates are also measurably lower compared to a year ago."
• An uptick in multifamily property sales in 2026 could signal stronger demand for appraisals. Multifamily sales are expected to accelerate in 2026 as buyers and sellers grow more aligned on pricing, interest rates stabilize, and transaction volume improves, according to Multifamily Dive. Executives say distress remains limited, although leverage issues and maturing loans could prompt more sales by mid-2026. Investors are increasingly drawn to coastal markets with steadier rent growth, while oversupply in the Sunbelt is expected to ease as new construction slows and rents stabilize. Ample debt and equity remain available, thanks to higher lending caps for Fannie Mae and Freddie Mac, although smaller sponsors face a tighter investor appetite. Private capital is driving most acquisitions as several smaller REITs pursue liquidation or strategic reviews, while larger REITs stay sidelined until pricing adjusts. Together, these forces indicate a more active, yet cautiously optimistic, multifamily market.