Atlanta builder Beazer Homes, following a national upswing in new house sales, cut losses during its quarter ending in March and reported a surge in sales and revenue, increased sale prices and a bit of optimism.
"It appears we have turned the proverbial corner," said company CEO Allan Merrill.
"While the trajectory isn't awe-inspiring, the direction is becoming clearer," he said.
Company results track what has happened across the industry.
Walter Molony, a spokesman for the National Association of Realtors, said new home construction was unnaturally slow for years, which created a lack of new homes for buyers. Selections of previously owned homes are also as low as they have been in years, he said.
Inventories are low because people are not moving, are sticking with their jobs, and are not putting their houses on the market because prices are so low, experts says.
"Demand had no where to go but up," Molony said.
As the economy exhibits some positive trends, such as dropping unemployment numbers, some pent-up demand for new homes is emerging, he said. Also, new households are being formed such as children moving out who had been living with parents during the recession. Permits for new home and apartment construction are trending up across the U.S., Molony said.
Alex Barron, founder of the Housing Research Center, a Texas investor's advisory firm, said driving factors for home sales increases include good prices, low interest rates and some increases in average rent costs have caused people to reconsider buying.
The effect is being seen locally. In metro Atlanta, permits for new home construction in March hit 786, a number not seen since September of 2008, according to Smart Numbers, the Marietta real estate analysis firm. Three of every four of those permits were issued in the north from Cherokee, through Cobb, North Fulton and Gwinnett counties.
By comparison, during metro Atlanta's growth years, more than 5,000 building permits were issued in a month.
Merrill cautioned it is too early to tell if the upward trend will hold.
"There are still nagging headwinds impeding a more robust recovery," he said.
Some impediments could include rising interest rates for mortgages, another general downturn in the economy and uncertainty over international markets such as Europe.
Beazer stock slid to as low as $1.35 last year, but closed at $3.10 Tuesday.
Company improvements this quarter include 844 homes sold, a 50-percent increase over the same period last year; 1,512 orders for homes, a 29-percent increase; and $191.6 million in revenue, up from $125.7 million last year.
The company has not return to profitability, reporting $39.9 million in losses, or 48 cents per share, compared to $53.8 million, or a loss of 73 cents per share for the same quarter of 2011.
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