WASHINGTON—The National Association of Home Builders (NAHB)/ Wells Fargo Housing Market Index (HMI) showed a decline of two-points to a score of 44 with the March figures in regards to builder confidence in the market for newly built, single-family homes. The HMI component gauging current sales conditions also declined four points to 47, but both the component gauging sales expectations in the next six months and the component gauging traffic of prospective buyers posted gains. The sales expectations saw an increase of one point to a 51, and the traffic of prospective buyers increased three points to 35 for March.
The HMI three-month moving averages for each region were mixed. The Northeast’s score held unchanged at 39, the Midwest and South each posted one-point declines to 47 and 46 respectively and the West registered a four-point increase to 58.
“During the Great Recession, the industry lost home building firms, building material production capacity, workers who retreated to other sectors and the pipeline of developed lots,” David Crowe, NAHB Chief Economist, said. “The road to a housing recovery will be a bumpy one until these issues are addressed, but in the meantime, builders are much more optimistic today than they were at this time last year.”
More information about the current HMI or NAHB can be found here.