Confidence among builders in the market for newly built single-family homes declined two points in May, according to a new survey from National Association of Home Builders and Wells Fargo.
The NAHB-Wells Fargo Housing Market Index for May dropped to 54 on a 100-point scale. That’s two points less than April’s figures but nine points higher than the year-ago figure.
Overall, the market remains strong, said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo.
"Despite this month's slight dip, builder confidence in the new home market remains above the 50-point benchmark," Woods said. "Overall, the second quarter of 2015 is shaping up to be very solid."
NAHB Chief Economist David Crowe said many would-be homeowners are still tentative about re-entering the housing market.
"Consumers are exhibiting caution, and want to be on more stable financial footing before purchasing a home," Crowe said. "On the bright side, the HMI component measuring future sales expectations has been tracking upward all year, mortgage rates remain low, and house prices are affordable. These factors should spur the release of pent-up demand moving forward."