The National Association of Home Builders (NAHB)/ Wells Fargo conducts a monthly survey focusing on builders’ views of the level of sales activity and their expectations for the near future. NAHB uses these survey responses to construct indices of housing market activity. (The index values range from 0 to 100.)
For the first quarter of 2010, the current market activity index for single family detached houses stood at 16, down from the previous quarter but up 9 points from the first quarter of 2009. The index for future sales expectations, at 26, declined 1 point from the fourth quarter of 2009 but rose 10 points above the first quarter of the previous year. For the first quarter of 2010, prospective buyer traffic had an index value of 11, which is down 2 points from the previous quarter but up 2 points from the first quarter of 2009. NAHB combines these separate indices into a single housing market index that mirrors the three components quite closely. For the first quarter of 2010, this index fell to 16, which is 1 point lower than for the fourth quarter of 2009 but 7 points above the first quarter of 2009.
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