According to reports by Fortune and John Burns Consulting, the homebuilding market is showing signs of recovery after a challenging period last year when buyer cancellations surged by 32%. Large homebuilders such as PulteHomes, KB Home, and DR Horton saw significant drops in buyer cancellations during the first quarter compared to the previous year. Buyer cancellations for home builders across the board also decreased to 9% in March, down from the peak of 24.6% in October.
The decline in cancellations indicates strong buyer demand, and the problem lies more with the lack of supply as sellers are not willing to sell due to favorable mortgage rates. Buying from builders can provide better mortgage rates and more options for buyers. Agents should focus on getting to know developers and their offers to spread awareness among homebuyers.
This is an encouraging development as it indicates robust buyer demand in a challenging market. However, the issue lies more with the lack of supply rather than the demand. Many sellers are not willing to sell due to their favorable mortgage rates. Fortunately, homebuyers have more options now with homebuilders and can secure better mortgage rates by buying from them. It's crucial for agents to raise awareness among homebuyers about this opportunity as many may not be aware of it. Therefore, it's imperative for agents to familiarize themselves with the developers in their market and the deals they offer.