US Builder Confidence for Newly Built Single-Family Homes Rises in May
On Monday, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder sentiment for newly built single-family homes rose in May to 37, up from 34 in April. Sentiment has now remained in negative territory for 25 consecutive months.
The HMI survey showed that 32% of builders reported cutting prices in May, down from 36% in April. The average price reduction was 6%, up from 5% in April. The use of sales incentives was 61%, compared with 60% in April, marking the 14th consecutive month this measure has remained at 60% or higher.
The HMI component measuring current sales conditions rose 3 points to 40, while the gauge of sales expectations over the next six months increased 3 points to 45. The index tracking prospective buyer traffic posted a 3-point gain to 25.
Regional three-month moving averages showed mixed results. The Northeast rose 1 point to 42; the South held steady at 35; the West declined 1 point to 28; and the Midwest increased 1 point to 43.
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