Home builders are expressing renewed confidence in their
industry, prompted in part by home buyers scrambling to utilize tax
credits that expire at the end of April. In fact, the Housing
Market Index – the gauge published by the National
Association of Home Builders that measures builder confidence in
home sales – rose from 15 in March to 19 in April, a
score that has not been seen since September 2009. Although new
home construction actually fell slightly in March, housing
construction as a whole rose to its highest level in nearly 16
months, bolstered by better-than-expected multifamily construction
numbers.
According to Fannie Mae's April 2010 Economic Outlook,
however, the housing recovery may be hindered in the coming months
by excess inventory and pending foreclosures. Persistent
unemployment may also delay the recovery, although most economists
believe that the 10.1% unemployment figure in October 2009 will
stand as this recession's peak.
