While there was a lot of enthusiasm about the market in February, there were some signs of panic setting in as well. Adobe Stock

A great sense of enthusiasm could be found in the housing market in February, but something else started to creep in—a mild sense of panic.

Builders wanted to build and buyers wanted to buy, but there were constraints on both fronts. For builders, they continued to sell out of homes quicker than they could replace them due to labor, government, land, and supply challenges. For buyers, the lack of inventory and rising mortgage rates created concerns that if they don’t buy today, they may miss their chance.

The net effect is that it is a good time for builders with inventory to sell. Zonda’s database shows that the national average sales rate per month per community was 3.1, up 28% from pre-pandemic levels even as builders are capping sales (more on that later). Communities are not only selling better but are also raising prices; 66% of communities saw higher prices month over month.

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