(Winston Salem, NC – May 1, 2010) First quarter 2010 numbers indicate market behavior consistent with a pending recovery for the Triad new home market, according to a recent report by Metrostudy, a national housing data and consulting firm that conducts a count of 100 percent of all new housing units in subdivisions within the market area each quarter.

One positive trend is a drop in finished vacant inventory to 2,462 units, down from 3,252 units in 1Q09. This is the second consecutive quarter where total inventory has been under 2,500 units, lowest levels since 1Q07. Also notable, 1,361 of these homes were finished and vacant. This is the thirteenth (13th) consecutive quarter the finished vacant inventory has decreased.

Another positive trend was housing starts, with 383 units started, up from 337 1Q09.

“And new home prices are adjusting to reflect today’s buyer,” said Ed Dunnavant, director of Metrostudy’s North Carolina division. Prices throughout the Triad continued to drift lower
with product offerings under $ 200,000 now capturing almost a 70% market share.

“Drops in inventory, homes and lots, increases in starts over 1Q09, a reduction in finished vacant inventory, price adjustments and product revisions to reflect today’s buyer, and a more positive mindset among the Triad’s new home market professionals together point toward better days,”  said Dunnavant.

“However, fundamental economic improvement in the areas of job growth, unemployment rates, and financial conditions of both the consumer and lending industry will be necessary to sustain any improvement in the new home market,” said Dunnavant. “These segments of the recovery are beyond the control of the Triad’s new home professionals. Therefore, ‘controlled exuberance’ is the attitude we should embrace over the coming months.”