Housing market activity drops in March

Housing market activity declined in March with National Association of Home Builders' composite Housing Market Index falling to 44.

Today, the National Association of Home Builders (NAHB) released their latest Housing Market Index (HMI) showing that assesments of housing activity declined in March with the composite HMI index falling to 44 while the "buyer traffic" index inscreased to 35.

It's important to note that March continued to show a flattening of sorts to future expectations, a development that is worth noting as the new home market moves through it's most active months at the start of the year (see Bob Tolls explanation for January - early spring being the new home markets most active period annually).

While all indicators have made truly spectacular improvements this year, it's important to note that conditions still remain fairly distressed by historic standards.

Although, looking at the data, it is fairly clear that the last few months of results indicate a major change in builder sentiment likely coming as a result of improvements in confidence given the notable rise in buyer traffic, reduced inventory and a more balanced monthly supply.