The current conditions component of the index, the most heavily weighted component, bolted up 19 points in March to 77, an all-time high and by far the largest month-to-month change ever recorded for the HMI. The strength in the market is not expected to abate at any time soon. The expected conditions component of the index gained four points to 84, equaling the previous high set in January.

The change in the traffic component for the index was probably the most welcomed development. The traffic component reading moved up 13 points to 59. This reading was not only an 11-point increase above the former all-time high, but also the first time the reading came in above 50. The 50 level is considered neutral within this index system, meaning as many respondents answered good as poor.

The HMI index reading for the single-family attached housing market moved up 13 points to 62. The current conditions measure in the market jumped 16 points to 63, but expected conditions remained flat with last month at 67. While a firmly positive number, expected conditions for attached product is 17 points below the same reading for detached product. Also of note regarding the attached market, even as readings for the detached market are at all-time highs, readings for the attached market are still moderately below highs set last summer.

Confidence in the multifamily market has surged also, driving the HMI reading for that market to 61, 26 points above the February number and only three points below the all-time high of 64. Current and expected conditions each improved significantly with 30- and 35-point gains respectively. Each component reading is now at a high not seen since last June.

Clearly, good weather and the continued outlook for low interest rates are trumping rising material and land costs for area builders as buyer traffic begins to strengthen ahead of the buying season.