U.S. homebuilders are feeling slightly less confident about their sales prospects, a reflection of the sluggish start to this spring’s home-selling season. Even so, builders’ overall sales outlook remains favorable.
The National Association of Home Builders/Wells Fargo builder sentiment index released Monday slipped to 54 this month, down two points from 56 in April. Readings above 50 indicate more builders view sales conditions as good, rather than poor. The latest reading is up nine points from a year ago.
Measures of current sales conditions and traffic by prospective buyers also fell. Builders’ outlook for sales of single-family homes over the next six months edged higher. Sales of new U.S. homes plummeted in March, as the spring buying season opened with sharp declines in the Northeast and South.