U.S. home builders’ sentiment increased to its highest level in more than five years.
The National Association of Home Builders just reported that its housing market index was 29 this month, up a point and the highest level since May 2007.
The index was based on a survey of 337 builders. Regionally, the index grew by five points in the Midwest and four points in the West. It fell by three points in the Northeast and two points in the South.
According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI):
A. Nationwide housing affordability hit a new record high for a second consecutive quarter in the first three months of this year.
B. Tight credit remains the primary obstacle for buyers
The latest HOI data reveals that:
C. The increase is to 77.5 percent (from 75.9 percent in 2011) of new and existing homes sold in this year’s first quarter as affordable to families earning the national median income of $65,000.
See www.nahb.org/hoi for tables, historic data and details.