According to the National Home Builders Association Index Number has grown in the month of April. Anything in the NHBA index below 50 is considered negative. The index grew 1.4 which was inline with projections. Here is the break down of the 3 main categories: Current Sales Conditions up 2pts to 51. Sale Expectations up 3 pts to 50. Buyer traffic unchanged at 31. To put it in perspective the index was at 77 last April when interest rates was much lower. This is the first time that 2 of the categories have gone positive since June of last year.
Currently of the homes for sale on the market 30% are new construction when historically it would usually be 10% of the market. Home builders are also feeling better about sales as only 30% of builders are discounting on prices compared to 35% in December. The average price drop reduction was 6% compared to 8% in December and incentives from builders rose to 59% from 58% also in December as they fight for buyers. The market is slowly stabilizing as buyers come to reality that higher interest rates are here to stay.
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