According to the just released Housing Market Index (HMI), the builder confidence for single-family homes lost just one point in May, falling to 45, which is very close to the reading of 46 for April. The index measures the perception of builders about single family home sales, as well as about prospective customers’ rate.
The regional HMI scores show that the South grew to 48, the Midwest fell by one point to 47, and the West fell by four points to 47.
Builders expect some sales increase in the coming months, but are in generally realistic about the slow and steady recovery of the market. It is clear that the construction market will stabilize even more whenever job growth and consumer confidence are back at their normal levels.