It's looking like the housing industry finally hit bottom in 2009. Although we are still seeing slower traffic and sales through some areas of the nation, other areas have retained pricing strength and picked up traffic. Even builders are expecting revenue increases in 2010, which is great news.
One thing that everyone can agree upon is that the tax credit extension and expansion were a huge help. However, they were not enough to drive demand through the seasonally slow time of the year. Many buyers just aren't feeling the urgency to buy a home right now and probably won't be until the tax credit expiration date nears.
Recently, a survey was done by John Burns Real Estate Consulting with home builders. Through this survey of 264 home building industry executives from both public and private companies, they found that almost all of them are expecting an increase in revenue during 2010 due to increased community count and slightly higher home prices.
The most confidence came from those of Texas, Southern California, some Western states, the Southwest and the Northeast. Many of them believe that the housing industry did hit its bottom in 2009 and will now begin a slow recovery due to distressed sales. However, these conditions will vary in certain areas, submarkets and price points.
More Survey Highlights:
* The average net sales per community had declined to 1.4 nationally from 1.6 just last month.
* The average unsold, finished home per community rose to 3.3 units, which is up from 2.8 units.
This is great news for the real estate industry. Let's all hope it continues.