Today, the National Association of Home Builders (NAHB) released their latest Housing Market Index (HMI) showing that assesments of housing activity declined in April with the composite HMI index falling to 42 while the "buyer traffic" index declined to 30.It's important to note that April continued to show a generally weakening trend, a development that is worth noting as the new home market moves through it's most active months at the start of the year (see Bob Tolls explanation for January - early spring being the new home markets most active period annually).
While all indicators have made truly spectacular improvements this year, it's important to note that conditions still remain fairly distressed by historic standards.
Although, looking at the data, it is fairly clear that the last few months of results indicate a major change in builder sentiment likely coming as a result of improvements in confidence given the notable rise in buyer traffic, reduced inventory and a more balanced monthly supply.
