Homebuilders Expect Sharp Rise in Demand This Spring

Washington, DC, March 23, 2015—U.S. homebuilders are gearing up for a sharp rise in demand this spring as Americans become more confident about keeping their jobs and are encouraged by easing access to credit, reports Reuters.

Several homebuilders resorted to bigger discounts to attract buyers during last year's spring selling season, which is to the builders what the holiday shopping season is to retailers.

Lennar Corp, Toll Brothers Inc., and KB Home, among the top six builders, together reported an average 19% increase in orders in the latest quarter, up from 3.3% in the same period last year.

This suggests that a drop in housing starts in February had more to do with unusually harsh winter weather than weakness in underlying demand.

Lennar, the second largest U.S. homebuilder, said that it expects single-family housing starts and permits to rebound "shortly."