Though newly built home sales rose to 192,000 nationally—the highest in 3.5 years—and median new home prices fell by 1%, some analysts say it's a rise back to mediocrity. But not everywhere; while speaking on a CNBC panel, Metrostudy's Chief Economist Brad Hunter says demand for new homes is high in the coastal Sun Belt region of the U.S. In fact, demand is so high that builders are having trouble hiring new workers.
"There are labor shortages in some parts of Texas," says Hunter.
On the topic of pricing, Hunter says that, though some regions are seeing an increase in median home pricing, other markets are seeing a downward trend. In Phoenix, for example Hunter says he saw a marked decrease in pricing for new homes.
But that's "old news," explains Hunter, who expects the market to improve now that we're out of a winter that dumped record snowfall to parts of the Midwest and Northeast.
"I think we're starting to see this improvement following what we called the pause," said Hunter. "Last fall and winter, things were very slow, kind of persisted, and we're seeing things starting to improve now."