Part 2/9:
The underlying issue appears to be two primary factors: persistently high home prices and high mortgage rates, which currently hover near 7%. These conditions have driven many potential buyers out of the market, leading to a substantial drop in demand. D.R. Horton reported a staggering 15% decline in sales orders in the first quarter of 2025 compared to the same period in 2024. This decline is especially pronounced in the Southeast and Southwest regions, where sales dipped by 20-25%. Such significant drops signal a troubling trend reminiscent of the market conditions leading up to the housing crisis in 2006-2007.