Builder confidence grew 7 points in May to a level of 37 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. The growth follows the highest month-over-month decline in the index’s history in April, when it fell 42 points following the start of the pandemic.
“The fact that most states classified housing as an essential business during this crisis helped to keep many residential construction workers on the job,” NAHB Chairman Dean Mon said in a statement. “At the same time, builders are showing flexibility in this new business environment by making sure buyers have the knowledge and access to the homes they are seeking through innovative measures such as social media, virtual tours and online closings.”
Low interest rates are also helping to fuel demand, according to NAHB chief economist Robert Dietz.
“As many states and localities across the nation lift stay-at-home orders and more furloughed workers return to their jobs, we expect this demand to strengthen,” Dietz stated.
Builder confidence index levels over 50 are generally considered positive, according to NAHB.
The full NAHB report can be found here.
