· The
National Association of Home Builders' (NAHB) reported that its April
Composite Housing Market Index remained stable with the prior two months
and at about the same level where it's been since September.
Nevertheless, these levels are more than two-thirds lower than the highs
of 2004.
· During the last twenty years there has been a 76% correlation between the y/y change in the Composite Index and the change in single family housing starts.
· The index for single family detached homes also remained near the cycle's low which was down about three quarters from the 2004 high. Builders saw a modest improvement in single family home sales during the next six months.
· The Home Builders' index remained low and stable throughout the countries' regions.
· Traffic of prospective home buyers was stable for the second month at a level which was up somewhat from the recent low.
· The NAHB index is a diffusion index based on a survey of builders. Readings above 50 signal that more builders view conditions good than poor.
· Visit the National Association of Home Builders.