Confidence amongst home builders rose in April, according to a report issued by Wells Fargo and the National Association of Home Builders (NAHB) on Wednesday.
The housing market index came in at a level of 14 for April, against expectations for a reading of 10 and following the previous level of 9 in March. The reading is the highest reported since October 2008, but still remains far below the critical 50 level that would indicate a return to positive sentiment.
The index, which has a 22-year history, consists of three components.
The sales expectations for the next six months component climbed a whopping 10 points to 25 in April. Meanwhile the component for present sales for single-family homes was up to 13 from 8. Finally, the component monitoring traffic of prospective buyers climbed five points to 14.
Over the past three years, the index has fallen from 61 to a record-low reading of 8 in January 2009. A rating above 50 indicates optimism by home builders; a reading below 50 indicates pessimism. The all-time low prior to the current credit crunch was 19.