Today, the National Association of Home Builders (NAHB) released their latest Housing Market Index (HMI) showing that all measures increased notably in February with the composite HMI index climbing to 29, the highest level seen since mid-2007, while the "buyer traffic" index climbed to 22.While all indicators made notable increased again in February, it's important to note that conditions still remain distressed by historic standards though, the last few months results appears to indicate a major change in the builder sentiment.
The new home market will likely not resume any significant form of healthy function until the considerable overhang of inventory is cleared.