The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index for April increased by four points from a prior revised reading of 52 in March to 56. The reading came in slightly above a consensus forecast of 55 from a Bloomberg survey.

An index reading above 50 indicates that more builders view sales conditions as good than view them as poor.

The current sales conditions subindex rose three points in April to 61 and the sales expectations subindex jumped five points to 64. The subindex that estimates prospective buyer traffic rose four points from 37 to 41. The buyer traffic subindex has been stuck below 50 for months, and the NAHB noted that low interest rates and continued job growth will bring out buyers now that the spring home-buying season has begun.

NAHB’s chief economist said:

The [Housing Market Index] component index measuring future sales expectations rose five points in April to its highest level of the year. This uptick shows builders are feeling optimistic that the housing market will continue to strengthen throughout 2015

In the NAHB’s four regions, the three-month moving average index rose in the South from 55 in March to 56 in April. In the Northeast the index remained unchanged at 42. The index dropped two points, from 56 to 54, in the Midwest and dropped three points in the West to 58.

The NAHB/Wells Fargo Housing Market Index has remained in positive territory since last July, but after a sharp drop in the first half of 2014 it has barely managed to return to its level of early last year. Still, prior to mid-2013, the index had not risen to 50 since mid-2006.

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