Price stability emerged in most areas of Texas, California and the Northeast, according to a recent study by California-based John Burns Real Estate Consulting. Florida and Midwest was close behind. The Northwest, Southeast, Southwest and outlying areas in all submarkets continue to struggle.

According to the study, sales per community have not changed much for several months and starts are increasing in seven of the 10 regions. The survey also shows that Federal intervention is having a positive impact on the housing market. "The phrase ’tax credit’ dominates in the verbatim comments we got from builders," said CEO John Burns. "We continue to expect improving conditions for the next several months as the November 30 tax credit deadline approaches."

Survey Highlights:

New home pricing net of incentives is almost flat nationally. California, Texas and the Northeast (including Washington D.C.) report flat prices, with as many locations now raising prices or eliminating incentives as are continuing to drop prices. The number of builders dropping prices only slightly outweighs those raising prices in the Midwest and Florida. The Northwest, Southeast (Carolinas and Georgia) and Southwest are the notable exceptions, where prices continue to fall. In almost all markets, the lower price points are faring better than the higher price points due to FHA financing and the Federal tax credit.

Ratings of current sales and expected sales rose slightly, while the traffic rating was flat from last month. While sales remain very low, builders reported that sales have improved month-over-month 6 of the last 7 months. The Southern California and Northeast regions posted notable gains in ratings of current sales and traffic, while Northern California’s ratings declined. Notably, numerous California builders reported a distinct falloff in sales following the end of the State tax credit in early July.