While pessimism is the new normal for the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) and many others, home builders' sentiments have hit a five-year high in this month's report.
The seasonally adjusted composite index stands at 29, the association said Tuesday. It hasn't been there or above since May 2007. The index uses an over/under mark of 50 to indicate if the majority of builders feel conditions are poor or good, respectively.
The index was up in three out of four regions of the country – the West was down slightly – and up in all components.
"The component gauging current sales conditions and the component gauging traffic of prospective buyers each rose five points in May to 30 and 23, respectively, with the traffic component hitting its highest level since April of 2007," NAHB said "The component gauging sales expectations in the next six months rose three points to 34."
