Confidence among home builders broke above the key breakeven threshold of 50 and into positive territory for the first time since last July, per the National Association of Home Builders (NAHB). Their Housing Market Index climbed three points to 51 in March, which was also the fourth consecutive monthly gain. Any score over 50 on this index, which runs from 0 to 100, signals that more builders view conditions as good than poor. All three index components posted gains this month, with current and future sales expectations both well into expansion territory at 56 and 62, respectively. The gauge judging buyer traffic also moved higher.
What’s the bottom line? The persistent lack of previously owned homes for sale, strong buyer demand, and rates below last fall’s peak have pushed builder confidence higher. NAHB Chair Carl Harris explained, “Buyer demand remains brisk and we expect more consumers to jump off the sidelines and into the marketplace if mortgage rates continue to fall later this year.”