In a recent survey by Citi, 70 percent of home builders nationwide reported increased new-home sales in March, a 15 percent increase from February’s survey. Citi analysts are calling it the largest month-to-month spike since the survey’s inception in 2010, according to a Business Insider story.
At the same time, just 5 percent of builders reported decreased sales in March; 15 percent reported declines the month before. For the remaining 25 percent, sales stayed virtually the same from month-to-month. Citi reports that an 18 percent jump in new-home sales is typical from February to March.
While many builders said they expect sales to continue rising, there are still several factors that concern them. One of the biggest is land position; almost 20 percent of those surveyed said that good lots are getting both more expensive and harder to come by. Other possible detractors include fuel prices, mortgage underwriting practices and the amount of time it takes for loans to process.
While the qualitative nature of the survey makes it difficult to offer solid numerical evidence of a turnaround, Citi is encouraged by the stories builders shared. One builder in Alabama said that while they’d had several contracts cancelled because of the buyer’s inability to secure a loan, they were seeing improvements in appraisals as well as the sale of foreclosed lots.
Another builder in Colorado called it their first quarter in six years, highlighted by a significant upswing in move-up housing.
To read the rest of the Business Insider story, click here.
Advertisement
Related Stories
Housing Markets
Metros Where Housing Prices Have Doubled in Less Than 10 Years
Historical data show it's taken less than 10 years for home prices to double in 68 of the country’s 100 largest cities
Housing Policy + Finance
Even With Inflation Running Hot and Elevated Mortgage Rates, Buyer Demand Rises
Mortgage rates will likely stay high for the next few months, but that doesn't seem to be deterring homebuyers
Financing
Q1 2024 Foreclosure Activity Rises Slightly
Data show New York, Houston, and Chicago topping the list of major metros with the greatest number of foreclosure starts during Q1 2024