Builder confidence heated up in May, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The Index reading for May was 70, up two points from the month prior. An above-50 reading indicates more builders have a positive outlook than a negative one.
“The solid May report shows that builders are buoyed by growing consumer demand for single-family homes,” said Randy Noel, chairman of the NAHB, in a statement. “However, the record-high cost of lumber is hurting builders’ bottom lines and making it more difficult to produce competitively-priced houses for newcomers to the market.”
“Tight housing inventory, employment gains and demographic tailwinds should continue to boost demand for newly-built single-family homes,” said Robert Dietz, chief economist of the NAHB. “With these fundamentals in place, the housing market should improve at a steady, gradual pace in the months ahead.”
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