Optimism for Sales Prospects Propels U.S. Homebuilder SentimentBy
More confidence among U.S. home builders this month shows the industry remains optimistic demand will keep growing in the face of rising property values, according to data Monday from the National Association of Home Builders/Wells Fargo.
|Highlights of Homebuilder Sentiment (May)|
A pickup in current sales is keeping builders upbeat about the market’s prospects over the next six months. Lean inventory of previously owned properties is encouraging some interested buyers to look at the new-home market. Greater demand is also helping allay builder concerns about higher costs for building materials and shortages of labor and lots. Stronger sales and construction would help provide more of a push for the economy. Builder sentiment has climbed since the November election on hopes of reduced regulatory burdens.
- Index of current sales rose to 76 this month from 74
- Confidence advanced in three of four regions, including the West and South
- Builder sentiment eased to a three-month low in the Midwest