Key Points
- U.S. builders remained cautiously optimistic in April as limited resale inventory helped to increase demand in the new home market even as the industry continues to grapple with building material issues.
- The NAHB Housing Market index rose one point to a reading of 45 this month from 44 in March.
- The HMI index gauging current sales conditions rose from 49 to 51 and the index for sales expectations in the next 6 months increased three points to 51.
- This marks the first time these components both returned to the 50+ range since June 2022.
- However, the index measuring traffic of perspective buyers was unchanged at 31.
- “For the fourth straight month, builder confidence has increased due to a lack of resale inventory despite elevated interest rates,” said NAHB Chairman Alicia Huey.
- The Right Facts will continue to monitor the housing market.