Homebuilder Confidence Improves Again in May

Washington, DC, May 18, 2009--Homebuilder confidence in the market for newly built, single-family homes improved for a second consecutive month in May to the highest level since September, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

The HMI rose two points to 16 this month.
 
“Builders are responding to what they perceive to be some of the best home buying conditions of a lifetime,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.

“You’re not likely to get a better deal in terms of mortgage rates than what’s available right now. Combine that with the affordable prices, multitude of home choices and $8,000 tax credit for first-time buyers that are now available, and you have a very appealing set of reasons to make a move.”
 
“The fact that the May HMI continued to tick up from April's five-point increase provides confirming evidence that the improved confidence level was no fluke,” added NAHB Chief Economist David Crowe.

“This continued increase indicates that home builders feel we’re at or near the bottom of the market and that positive signs lie ahead for builders and potential home buyers, provided that builder access to production credit significantly improves.”