It is not a surprise that Lennar is claiming that orders for new homes has increased. It makes sense that homebuyers are taking advantage of the lower housing prices, lower interest rates and the federal tax credit.
On our end we also see an outlook of improvement and most importantly stabilization. It appears that the market is headed toward stabilization.
We feel that the tax credit has been a factor in the surge of new homebuyers as they aimed to buy prior to the expiration for the tax credit that now will expire in April. In addition to extending the tax credit the government also provide a tax credit for repeat homebuyers.
Right now investors are keeping a close eye on the major homebuilders because their performance will be a good predictor of the housing market and how it will recover.
We hope that the tax credit isn’t the only reason people are buying. We will be keeping a close eye on the market.
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