Independent Consulting Firm Finds Stability, Improvements In Housing Market
For the second consecutive month, sales and traffic for new homes have improved across the nation, according to a recent survey conducted by John Burns Real Estate Consulting.
The February Home Building Executive Survey was compiled using market ratings—which represented thousands of new home communities—from 236 builder executives.
On a scale from one to 10—one being the lowest and 10 being the highest—surveyors found that the traffic in new home communities has increased since December 2008 from 0 to 3. One Dallas builder attributes the increase in traffic to the decrease in interest rates.
And while a St. Louis builder notes that an increase in traffic doesn’t always mount to an increase in sales, January numbers suggest that sales are also on the rise.
“We just finished January with the highest sales pace in several
quarters,” says an Austin, Texas builder. He also adds that competitive pricing has increased real estate sales.
According to the survey, net sales per community saw stabile numbers across the country and an increase from December 2008 in the Texas market. On a scale of zero to 10—decreased to increased—surveyors rated the national net sales per community at 5.5, which is more than half way up the scale. The Texas market led all other areas with a scale reading of eight.
“January 2009 has picked up in a big way,” said one Houston builder. “We are requiring more earnest money and option deposits up front. The $7,500 tax credit is piquing interest among first-time home buyers.”
Looking Into The Future:
The Survey shows that expected sales of new homes throughout the next six months also has seen a rating increase from December 2008. Texas and the Northeast, in particular, are above the national average of expected sales of new homes. On the same scale—from one to 10—surveyors ranked the expected sales of single-family detached homes in the Texas and Northeast markets at a solid 3, which is moving closer to the scale’s ‘fair’ mark.
About John Burns Real Estate Consulting:
John Burns Real Estate Consulting is a national consulting firm that helps executives make informed decisions on the housing industry. The company provides third-party research and analysis to executives across the United States.
—Lauren Varga
