Home Builders See Brighter Days Ahead

The National Association of Home Builders’ Housing Market Index measures home builders’ confidence in the market for newly built single-family homes. The survey, which has been conducted for the past 30 years, gauges perception of the market on a scale where any number above 50 indicates more builders view conditions as good than poor. In April, the index rose four points to 56. Tom Woods, NAHB’s chairman, said the increase is an indication that builders see conditions improving. “As the spring buying season gets underway, home builders are confident that current low interest rates and continued job growth will draw consumers to the market,” Woods said. In fact, builders seem most optimistic about the months ahead. For example, the component of the index measuring sales expectations for the next six months saw the biggest gains, jumping five points to 64 – the highest level yet this year. Components gauging current sales conditions and buyer traffic were also up from the month before. Regionally, three-month moving averages reveal that the South, West, and Midwest all remain above 50, while the Northeast trails behind at 42. More here.

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