Homebuilders Say Market Positives Trump High Gas Prices

Sales of newly built homesare still stumbling along at historically low levels, but builders claim they are beginning to see the light at the end of a very long tunnel.

Sales may not be surging back, but in some of the better local economies, buyer interest is.

We saw it at open houses over the President's Day weekend, and it's starting to show up on line even more dramatically. Virginia-based NewHomesGuide.com, the website of New Homes Guide magazine, saw a 46 percent jump in unique visitors from December 2011 to January 2012 and a 47 percent jump from one year ago. Page views were up 59%.

"We always see a seasonal jump in January," said Publisher, Leslie Stritmatter in a press release, "but the increases from the same period last year show this to be a much more significant bounce. I'm very hopeful that this is a sign of consumer confidence returning to the markets.

Consumer sentiment is improving. "Right now the improving labor market trumped rising gasoline prices in influencing confidence, which is good in that new jobs and wages can help cushion the blow of an ever rising cost of living," says analyst Peter Boockvar at Miller Tabak.

When it comes to housing, the same may be true of high affordability, improving employment, better confidence, record-low mortgage rates and lower-priced homes; they all trumprising gasoline prices.

"We don't think there's going to be a big impact from gas prices because we have so many forces taking us to recovery," says Richard Kettler of Kettler/Forlines Homes.

Kettler says they have seen a substantial increase recently in the number of visits to his homes, which largely straddle the suburbs and exurbs of Washington, DC.

"The attitude of the home buyer is much better, they're more excited," he adds. He also notes there is now suddenly more interest in larger homes, not McMansions, but moving from the 2 thousand square foot range to 3000.