Home Builders Report Cancellation Rates as Normal, Foot Traffic Impacted
March 25, 2020
HomeSphere is partnering with BTIG to keep our partners current on home building business trends as they relate to COVID-19's impact on the economy and our industry.
The majority of builders who responded to our first flash survey reported that cancellation rates of existing home sales were seasonally normal, suggesting buyers have remained committed to their purchases by and large.
Fourteen percent of respondents suggested cancellation rates were normal than lower, while 16 percent described the rates as above normal levels.
Builders were split on sales activity in mid-March, with 49 percent reporting a seasonally normal pace, while 49 percent reported a slower-than-usual pace.
Not surprisingly, homebuyer foot traffic has been negatively impacted, with 67 percent of builder respondents reporting a slower-than-usual pace. Interestingly though, one builder reported that homebuyers who do show up are very serious. Thirty-one percent of builders reported a seasonally normal pace for foot traffic.
In response to more people staying at home, one builder reported seeing increases to online traffic.
Anecdotal builder commentary suggests that while there are clear concerns regarding field operations, there is also optimism around customers who have already made purchases continuing to move forward with those purchases. BTIG reports this data is better than expected.
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