Builder confidence in new single-family homes in May is at 54, a two-point decrease compared with April but a nine-point increase year-over-year, according to the National Association of Home Builders Housing Market Index.
Although a decrease, May’s level is still above 50, signifying that more builders are optimistic about the single-family home market than not.
The HMI consists of three components. The component that charts sales expectations in the next six months rose one point to 64, the figure that measures buyer traffic decreased by one point to 41 and the index that gauges current sales conditions went down two points to 59.
Regionally, the three-month moving average HMI in the South and Midwest rose one point to 57 and 55, respectively. The Northeast’s HMI dropped one point to 41 and the West’s decreased three points to 55.
"Consumers are exhibiting caution, and want to be on more stable financial footing before purchasing a home," said NAHB Chief Economist David Crowe in a statement.
