Buyer Confidence In Housing Market Highest Since 2007
Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months. The Housing Market Index results for March indicated steady builder confidence in the new homes market. According to the National Association of Home Builders/Wells Fargo, the HMI is remaining at its highest level since June of 2007 after five monthly gains. “While builders are still very cautious at this time, there is a sense that many local housing markets have started to move in the right direction and that prospects for future sales are improving,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Florida. “This is demonstrated by the fact that the HMI component measuring builder expectations continued climbing for a sixth straight month in March, to its highest level in more than four years.”
“Builder confidence is now twice as strong as it was six months ago, and the West was the only region to experience a decline this month following an unusual spike in February,” observed NAHB Chief Economist David Crowe. “That said, many of our members continue to cite obstacles on the road to recovery, including persistently tight builder and buyer credit and the ongoing inventory of distressed properties in some markets.”
The current sales conditions index dropped one point in March while the index gauging sales expected in the next six months gained two points. Regionally, the Northeast saw the largest gain (+5), followed by the Midwest and South (both +2) with smaller gains. However, the West fell 10 points.
Source: National Association of Home Builders/Wells Fargo