An index that gauges builder confidence in new single-family homes rose 5 points in April to the highest level since October 2008, the National Association of Home Builders reports.

The NAHB/Wells Fargo Housing Market Index is derived from a monthly survey of builders that asks builders to rate their perceptions of current market conditions and sales expectations in the next six months as "good," "fair" or "poor," and to rate traffic of prospective buyers as "high to very high," "average" or "low to very low."

Scores for each component are used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Though the overall index score is still very low at 14 this month, it is an improvement over index scores for the past five months, when it did not exceed 9. This gain was the largest one-month increase recorded since May of 2003, NAHB reported. The highest increase was in the index segment that gauges single-family sales expectations in the next six months, which rose 10 points from last month.

David Crowe, NAHB chief economist, said in a statement that low home prices and mortgage rates and the introduction of the $8,000 tax credit for first-time buyers have aided builders, though builders still face difficulty in securing financing for acquisition, development and construction.

NAHB represents about 200,000 members involved in homebuilding, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction.

Alicia Howe

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription