While there are far more homebuilders in the West who are optimistic than pessimistic, the numbers are reversed in the East.
As of May, the Housing Market Index — a gauge of home builder perception in the new home market — came in at 58.
An index that comes in greater than 50 is an indication that
more home builders view market conditions as good than poor.
The index is
published monthly by the National Association of Home Builders and Wells Fargo.
The index has not changed for four consecutive months.
Based on a three-month moving average, the index in the South was up one point from April to 59. A one-point gain in the Midwest left the index there at 58.
There was no change in the West, with that index landing at 67 — the highest of any region.
In the Northeast, the index fell three points to 41.
The national Housing Market Index reflects three components.
One is buyer traffic,
which was 44 during the most-recent month — no different than a month earlier and the lowest of any component.
The index for current sales conditions was 63 this month, also unchanged from the prior month.
But the index
measuring sales expectations for the next six months increased three points from April to 65.
