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.