A measure of how companies that build new houses feel about the market reached a milestone this month, according to the National Association of Home Builders.
Its builder confidence index, based on homebuilder surveys, rose four points to 53, a six-month high. Any reading over 50 indicates more builders see sales conditions as good than poor.
“This is the first time that builder confidence has been above 50 since January and an important sign that it is strengthening as pent-up demand brings more buyers into the marketplace,” said Kevin Kelly, the chairman of the Washington-based association.
Confidence among builders about current sales conditions, future sales and potential buyer traffic all rose this month. And confidence was up among builders in all four regions of the country.
New home sales were up 18.6 percent from a year earlier in May, reaching a six-year high, according to Commerce Department data. New home prices were up 7 percent from May 2013.
