U.S. homebuilders are feeling more confident about their sales prospects than they have since last fall, while their outlook for sales over the next six months is at the highest level in 10 years.
The National Association of Home Builders/Wells Fargo builder sentiment index released Monday climbed to 59 this month, up five points from the May reading of 54.
Readings above 50 indicate more builders view sales conditions as good rather than poor. The latest reading is up 10 points from a year ago and is at the highest level since September.
Measures of current sales conditions and traffic by prospective buyers also surged. Builders’ outlook for sales of single-family homes over the next six months also rose sharply.
The robust jump in confidence among builders reflects improved demand for new homes so far this year despite a sluggish start to the spring home-selling season. A brutal winter shut down construction sites and slowed buyer traffic at open houses earlier this year.