Home builders’ confidence in the housing market rebounded in April, likely due to better than expected weather and a federal first-time and repeat buyer housing tax credit that expires at month’s end.
Overall, the NAHB/Wells Fargo Housing Market Index (HMI) rose to a reading of 19 this month, an increase of four points compared to March. The index’s individual components improved as well in April. Current single-family sales jumped four points on a monthly basis to a reading of 20, which is the strongest performance in two years, according to Carl E. Reichardt Jr., an analyst with Wells Fargo Securities in San Francisco. Buyer traffic also improved four points, to 14.
However, single-family sales for the next six months inched up just one point, to 25, indicating that builders are unsure about the market once the housing tax credit expires.
Alison Rice is senior editor, online, at BUILDER magazine.
Learn more about markets featured in this article: San Francisco, CA.