Andrew Smith writes for home Builder's Research that home builders "across the Las Vegas valley started February with a bang, reporting the 5th most total Net Sales to our Weekly Traffic & Sales Watch going back to 2009."
Most home sales are made during the warm month window (March to October) making this February sales spurt unusual. " Only 7 of the top 50 selling weeks, again going back to 2009, occurred outside of the March-October window," writes Smith.
Perhaps the reason for home shoppers to brave to cold, blustery Las Vegas weather (locals hide in their homes if the wind chill is under 50, they'd rather troop through model homes when it's 110), is the sense of interest rate urgency. Mortgage rates popped 75bp from November to January, and have now backed off some.
The Mortgage Report explains, "But despite the recent jump, deals can still be found and mortgage shoppers are getting into ultra-affordable mortgages. Rates in the low 4s were once considered "too good", but those rates are now abundant in the marketplace."
Low rates mean higher prices and builders are reaping the benefits. For some, the crash of '08 is ancient news, for some of us it seems like yesterday. Home builders have short memories. That's probably a good thing.