NAHB housing market index rebounds 250
- NAHB housing market Index for May rises to 50 from 45 last month and 45 estimate. 5th straight month of gains
- Current single family home sales 56 versus 51 in April
- home sales over next 6 months 57 versus 50 in April
- index of prospective buyers 33 versus 31 in April
The level 50 is the dividing line between expansion and contraction. The index has not been above 50 since July 2022. The low reached 31 in December 2022. The range pre-pandemic was mainly between 55 and 70. During the pandemic, the index spiked to around 90 with a low near 75. The last year has seen sharp falls as rates moved higher.
The data is positive and rebounding despite the rising rates. Inventory levels remain low and although prices are lower as it retraces Covid gains, the market is seeing some green shoots in the spring (it helps that rates remain steady if not lower going forward).