Builder confidence in the market for newly built single-family homes rose one point to 17 in March, according to the National Association of Homebuilders/Wells Fargo Housing Market Index (HMI). This is the highest the HMI has been in 10 months, during final days of the federal home buyer tax credit.
"Builders are cautiously looking forward to the spring home buying season in hopes that improving economic conditions will help bring more buyers to the table," said NAHB Chairman Bob Nielsen. He added that the same factors that have been weighing down the homebuilding industry for some time-consumers' inability to sell their existing home, low appraisals due to using distressed properties as comps, and restrictive lending conditions for both buyers and builders-are still a problem.
The HMI's current sales conditions indicator and prospective traffic indicator held unchanged in March at 17 and 12, respectively. Meanwhile, the component gauging sales expectations in the next six months rose two points to 27, also its highest level since May 2010. Any number over 50 indicates that more builders view sales conditions as good than poor.
