The National Association of Home Builders Housing Market Index rose five points to a reading of 50 this morning. The number 50 represents the beginning of optimism for the nation’s new construction market, and hasn’t been this high in almost a year. The NAHB cites a lack of inventory in the existing home market as a big factor for the rise in model home traffic, which in turn is fueling confidence among contractors. Over the last 20 years, new home sales have accounted for 12.7% of all homes sold. Last month, that number was 33%.
Fifty-four percent of the new homes under contract are offering some type of incentive to the buyer, which is down from the 59% last month and 62% in December. My experience is that I am able to beat the pants off of almost all preferred lender incentives where the concession is a credit for closing costs, so keep that in mind. Even in instances where the builder is throwing in vaulted ceilings and granite countertops for using the preferred lender, I’ve been able to structure the financing in a way that the client still benefits by using me for financing and paying for the upgrades themselves. It’s not every time, and I’ll be the first to tell you when I’m being beat, so thanks for always giving me a shot to help you get the best deal.