Builder confidence in the new, single-family home market is up to 44 on the National Association of Home Builders/Wells Fargo Housing Market Index. This is up two points from April.
"Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates and strengthening local economies," noted NAHB Chairman Rick Judson, a home builder from Charlotte, N.C., in a statement. "This is definitely an encouraging sign even amidst rising challenges with regard to the cost and availability of building materials, lots and labor."
Based on builders' perception of current sales conditions, sales expectations and buyer traffic, an index number below 50 indicates more negative responses than positive regarding the state of the market. However, all three components saw gains this month, and expected sales hit its highest point since February 2007, with 53.
