Home builder sentiment increased in May across the U.S. This month, the National Association of Home Builders/Wells Fargo Housing Market Index rose to 37, up from 34 in April. About 32% of builders cut prices in May as a sale incentive to potential homebuyers.
The price cut was down from 36% in April, with an average price reduction of 6%, versus 5% in April. The use of sales incentives was 61% in May, up from 60% in April, the 14th straight month at 60% or higher.
The survey’s measure of current sales conditions rose to 40 from 37 in April, while its gauge of future sales climbed to 45 from 42. A measure of prospective buyer traffic increased to 25 from 22.
