In April, home builder sentiment nationwide rose to its highest level in eight months, further supporting a growing consensus that the three year slump in housing might be nearing its conclusion.
This is according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), which increased for the second straight month from 14 to 16. This index measures builder confidence within the market of newly built, single family homes, & according to the NAHB, current market conditions may represent "the best home buying conditions of a lifetime."
Looking forward, another component of the HMI gaining the most was the builder sales expectations for the next six months, which surged 10 points to 25. This may suggest that there may be an expectation that builders are betting that the rate of decline is slowing and may soon turn positive.
The chief economist of the NAHB has indicated that we are near or at the bottom of the current housing slump, and that buyers are responding to low home prices, extremely affordable mortgage rates, and the new $8,000 first time home buyer tax credit.
The latest data from the NAHB is another positive indication that the housing market may be turning a corner, and that the conditions for buying new or resale property now may prove to be the best in a generation.