Homebuilder Confidence Up in May

Homebuilders’ confidence rose in May for the second consecutive month, boosted by first-time homebuyer tax credits and a more affordable housing market.

An earlier report from The National Association of Home Builders showed home prices fell 14% in the first quarter of 2009, but now, builders are responding to what they perceive to be some of the best home-buying conditions of a lifetime.

The report also cited encouragement from the Department of Housing and Urban Development’s recent announcement that it plans to allow home buyers to use the stimulus package’s $8,000 tax credit as downpayment cash.

NAHB chief economist David Crowe wrote in the report, “This continued increase indicates that home builders feel we’re at or near the bottom of the market.”