Builders Grow More Optimistic as Spring Takes Hold

(CN) – Homebuilders are growing more confident about selling their projects, as demand for housing grows and existing homes remain in short supply.

A new analysis released Tuesday, the National Association of Home Builders/Wells Fargo builder sentiment index, shows homebuilder satisfaction rose to 70 points, up from a revised reading of 68 in April.

The index found homebuilder sentiment highest in the West and lowest in the Northeast, with the South and Midwest being close to even in between.

The increase comes after four months of declines on the index.

That ends a four-month slide for builders.

Any reading above 50 indicates more builders see sales conditions as good rather than poor. The index has remained above 60 since September 2016.

Builders’ view of current sales conditions rose two points to 76 this month. The outlook for sales over the next six months held at 77. A measure of buyer traffic held steady at 51.

The Associated Press contributed to this report.

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