Homebuilder confidence beat economist predictions and rose for the fourth straight month, according to the National Association of Home Builders.
- M-O-M: The NAHB/Wells Fargo Housing Market Index rose to 45 in April, one point higher than in March and the highest level since September 2022.
- Y-O-Y: Despite the four-month streak, homebuilder confidence remains 32 points below the same time last year.
Beat The Street. Economists had projected that the index would hold at 44.
No Negatives. None of the components that make up the index fell in April. The single-family present sales index held on to the top spot with an index of 51 in April, up two points from March and the highest level since September 2022.
- Single-family sales the next six months jumped to 50 in April, up three points from March and the highest level since last June.
- Traffic of prospective buyers held at 31 which is the highest level since last September
South On Top. Even with no gain in April, the South held on to the top spot with an index of 50 which is still the highest level since last September. The biggest gainer this month was the West which jumped to the highest level since last August after a five-point increase to 41.
- The Midwest jumped three points to 39 and the Northeast was unchanged for the third month at 46.
Analysis. Alicia Huey, NAHB Chairman, says the increase in homebuilder confidence has a lot to do with the lack of available inventory. “For the fourth straight month, builder confidence has increased due to a lack of resale inventory despite elevated interest rates…Builders note that additional declines in mortgage rates, to below 6%, will price-in further demand for housing. Nonetheless, the industry continues to be plagued by building material issues, including lack of access to electrical transformer equipment.”