After hitting a fresh cycle-high in March, the National Association of Home Builders’ (NAHB) Housing Market Index fell 3 points in April to 68.
All three HMI components edged lower on the month. but remain at healthy levels. The components gauging current sales conditions fell three points to 74 while the index charting sales expectations in the next six months dropped three points to 75. Meanwhile, the component measuring buyer traffic edged one point down to 52.
Despite the dip, confidence remains relatively high. The present sales index has trended above 70 for five consecutive months, signaling strong demand for new homes.
All areas except the West saw sentiment fall in April. After a late season blast of winter weather, the Northeast reported an 8-point drop, substantially reversing March’s 14-point rise.
The solid readings for builder sentiment coincide with stronger reports for retail sales at home improvement stores, which are up solidly on a three-month annualized basis. Residential investment is one of the few bright spots for first quarter growth.
Builders continue to report significant interest among potential home buyers, with the traffic measure continuing to score above the breakeven level of 50. It was 52 in April.