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Builders Remain Upbeat in April
Strong demand for new single-family homes is helping to buoy builder confidence as the market heads into the late spring selling season, according to the latest NAHB/Wells Fargo Housing Market Index (HMI), which was released on April 18.
The April HMI edged down by three points to 67 but remained within the strong 67-71 range of builder confidence that has persisted for the past 14 months.
“Builders continue to express confidence in the overall housing market and expect sales to remain strong during the next six months,” said NAHB President Dave Wilson.
“Favorable market conditions and the appeal of homeownership continue to fuel demand,” said NAHB Chief Economist David Seiders. “Many builders are reporting higher lot prices and some difficulty in finding available land, both symptoms of strong demand for new homes. NAHB expects both home sales and house values to remain healthy in coming months,” he added.
The NAHB/Wells Fargo Housing Market Index (HMI) is derived from a monthly survey of builders that NAHB has been conducting for nearly 20 years. Each month, builders report current sales of single-family homes and prospects for sales in the next six months. They also rate traffic of prospective buyers. Any number over 50 indicates that more builders view sales conditions as good than poor.
The component index gauging current single-family sales remained at a solid 73 this month, while sales expectations for the next six months and the traffic of prospective buyers registered 76 and 50, respectively.
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