Home builders have grown more optimistic about market conditions, with builders in the South boasting the most improved view.
The National Association of Home Builders/Wells Fargo Housing Market Index was reported at 56 as of April.
An index in excess of 50 is an indication that there are more single-family home builders who view conditions as good than there are who view conditions as poor.
The index
increased by four points compared to the revised level for the previous month.
“As the spring buying season gets underway, home builders are confident that current low interest rates and continued job growth will draw consumers to the market,” NAHB Chairman Tom Woods said in the report.
The South was the only region to see an increase on a three-month moving average — with the index rising one point to 56.
A three-point decline was experienced in the West — the most of any region. Still, the index in the West remained highest at 58.
A two-point decline left the Midwest index at 54.
The lowest index was in the Northwest at 42, the same as the previous month.
Builders who are surveyed are asked to gauge three components.
One of the components,
sales expectations for the next six months, jumped five points to 64. It was the highest level of 2015.
“This up tick shows builders are feeling optimistic that the housing market will continue to strengthen throughout 2015,” Crowe explained.
Although another component, buyer traffic, rose four points to 41 — the low index level suggests traffic remains very slow.
The third component,
current single-family home sales, was 61, moving up three points from a month earlier.
