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Positive numbers in builder confidence are pointing to market recovery, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The Index jumped 21 points to 58 in June for newly built single-family homes. According to the NAHB, any reading above 50 indicates a positive market.

Looking at regional numbers, the Northeast increased 31 points to 48 in June, while the South jumped 20 points to 62. In addition, the Midwest saw a 19-point increase to 51, and the West increased 22 points to 66.

“As the nation reopens, housing is well positioned to lead the economy forward,” said NAHB Chairman Dean Mon, a home builder and developer from Shrewsbury, N.J. “Inventory is tight, mortgage applications are increasing, interest rates are low and confidence is rising. And buyer traffic more than doubled in one month even as builders report growing online and phone inquiries stemming from the outbreak.”

“Housing clearly shows signs of momentum as challenges and opportunities exist in the single-family market,” said NAHB Chief Economist Robert Dietz. “Builders report increasing demand for families seeking single-family homes in inner and outer suburbs that feature lower density neighborhoods. At the same time, elevated unemployment and the risk of new, local virus outbreaks remain a risk to the housing market.”

Source: National Association of Home Builders

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