Builder sentiment improved slightly in May, spurred by modest increases in current and future sales conditions and a slight rise in traffic from prospective buyers.
Builder confidence ticked up three points to 37 in May, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) report, released on May 18. Builder sentiment improved as current and expected sales conditions both ticked up three points to 40 and 45, respectively, while traffic from prospective buyers inched up three points to 25.
Despite the rebound, builders’ confidence in constructing new single-family homes has remained in negative territory for the past 24 months. Nearly a third of homebuilders in the United States slashed prices in May as the housing market grapples with affordability challenges, the NAHB stated….