Pick Up in New Home Traffic?

New home sales, traffic and expectations picked up a tick in January, especially in Texas, according to John Burns, an Irvine, Calif.-based real estate consultant. "The pick-up is real" in the Lone Star State, where price appreciation has been insignificant and the economy is still okay. He said the increase is driven by lower mortgage rates. Nationally, the consultant's proprietary survey of 236 building industry executives found traffic at new home subdivisions picked up "slightly" for the second straight month, pushing the needle from "very low" to "low." The survey also found that inventory is declining, most notably in the Southwest and South Florida, where the number of completed but unsold units dropped two and three units per community, respectively. Also worth noting, while two out of five builders surveyed report starting no new houses in January, 14% indicated they pulled permits on three or more units, up from 9% the month before. Despite these slivers of good news, Mr. Burns said it is too early to call a bona fide upturn.