Builder Confidence Improves in April

Washington, DC, April 16, 2010--Builder confidence in the market for newly built, single-family homes improved significantly in April as consumers rushed to take advantage of home buyer tax credits set to expire at the end of the month, according to results of the latest National Association of Home Builders/Wells Fargo Housing Market Index.

The index surged four points to 19 in April, its highest level since September of 2009.

"Home builders reported some real improvement in current sales activity and traffic of prospective buyers through their model homes over the past month," said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich.

"While we remain cautious about what future months will bring, it's great to have this positive momentum at the start of the spring home buying season."

NAHB Chief Economist David Crowe said that builders have a more neutral view of what may come in the next six months, and are very aware of the many factors that continue to drag on housing at this time, including the critical shortage of credit for new and existing projects, problems with inaccurate appraisals, and the ongoing flow of foreclosed properties on the market.

"Greater economic growth, particularly in the job market, and the abatement of these housing issues are needed to help move home building to a more sustained recovery," Crowe said.

The Midwest and South each registered substantial HMI gains in April, rising five points to 15 and four points to 21, respectively. Meanwhile, the Northeast posted no change at 22 and the West dipped two points to 13.