Homebuilders in the Northeast feel better about the market than their peers nationally, according to an index released Monday by the National Association of Home Builders and Wells Fargo.
The Housing Market Index for the Northeast increased to 23 in March, an increase of five points from February and the highest confidence level of any region.
Nationally, the index fell two points to 15 this month.
The index asks builders about their perceptions of current single-family home sales, sales expectations for the next six months and the rate of traffic from prospective buyers. An index value below 50 indicates more builders view conditions as poor than good.
“The lack of available credit for new projects, the large number of distressed properties for sale and the continuing hesitancy of potential buyers due to the weak job market are definitely weighing on builder confidence at this time,” David Crowe, the association’s chief economist, said in a statement.
“That said, the inventory of new homes on the market is at an extremely low level, and we do expect a 25 percent improvement in new-home construction in 2010 over 2009 to rebuild inventory and meet expected pent-up demand,” he added.
In falling to 15, the national index returned to the same level as in January.
Regionally, the West posted a one-point gain to 15, the Midwest fell three points to 10 and the South dropped one point to 18.
The national index remained above the levels of early last year, when it had dipped to below 10 for the first time since the association started the survey in 1985.
