The confidence of home builders in the country was not found wanting these days.
It's, in fact, on the rise stemming based on its highest monthly reading for the year that comes on the heels of some downward trends experienced for a three-month duration, Forbes explained.
"Sentiment among the nation's home builders rose four points in April to a level of 56," according to the National Association of Home Builders/Wells Fargo Housing Market Index, CNBC Real Estate reports.
There are three metrics by which the home builder confidence level is measured in the NAHB index. The first one is the builder perceptions of current single family homes future sales, which has seen its highest level for this year rising by five points; sales expectations for the next six months, which is also on the rise by five points, and now stands at 64; and buyer traffic now up to 41 with a four-point increase.
"This uptick shows builders are feeling optimistic that the housing market will continue to strengthen throughout 2015," says David Crowe, Chief Economist at NAHB, in a statement. The Wells Fargo Housing Market Index turned out a bit better (56) than what was expected (55) back in April. "Readings above 50 indicate that more home builders view market conditions as good than poor," notes Forbes.
This upward movement in U.S. home builders' sentiments is expected to be sustained from the selling period within June to August, which is deemed as the most active time of the pyear for home sales.
"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," said Tom Woods, chairman of National Association of Home Builders and a home builder from Blue Springs, Missouri, in a press release, via CNBC.
Meanwhile, Bloomberg says that housing starts are also projected to make a stronger push from 897,000 in February, to a seasonally-adjusted annualized rate of 1.04 million units, as told by Forbes. Housing starts plummeted leading to the month of February as severe winter season stymied the sales and construction for both the consumers and builders. The Commerce Department is about to release housing starts data for March.
The Wells Fargo Housing Market Index is a monthly survey that the NAHB has come up with for 30 years. The scores for the three components aforementioned are then used to calculate a seasonally adjusted index, the World Property Journal cited.
