Even though the homebuyer tax incentives have expired U.S. homebuilders are feeling more optimistic about their future since many of them are expecting improved sales and customer traffic as summer begins.
Yesterday the National Association of Home Builders reported that its housing market index rose three points this month to 22 which is the highest reading since August 2007 and is used to track industry confidence. Any readings below 50 would indicate a negative sentiment about the housing market and the last time this index was above 50 was back in April 2006.
The expired government incentives did help push up home sales this spring but now without the tax credits many experts anticipate that home sales will slow in the second half of this year.
Despite the fact that new home sales are down 70 percent from their peak which was reached in July 2005, sales of new homes did rise nearly 30 percent in March which was the biggest monthly increase in almost 50 years.