MDC Holdings' average home price was $368,000 last year, a $50,000 increase from its 2012 average sale price. During an analyst conference call earlier this month on 2013 fourth quarter, CEO & Chair Larry Mizel said, "We're looking forward to a robust spring market."

With several new communities coming on line, John Stephens, MDC's chief financial officer, principal accounting officer and senior VP, said MDC has been investing where the demand is — in the company's home state of Colorado. "In terms of markets, we've been very, very comfortable and very excited about what we've done here in our home state of Colorado," Stephens said. "Demand was strong early in the year, obviously tapered off a little bit as we got into the fourth quarter."

During the Q&A that followed Mizel and Stephens' initial report, Mizel's response to what he considers a robust spring market will be, in light of the fact that mortgages no longer hover around the 3.5% rate. Beyond stabilizing the mortgage and stock market, along with Washington's waffling decisionmakers, Mizel said, "I think we have a couple elements in the housing market that really puts us down the road in a positive basis and that is that the standing inventory of homes is very low."

He added that he's optimistic because, "as a general statement, as new homes are being completed, they generally don't stay on the market very long."

Mizel also observed the new normal may now very well include resale, distressed and new homes. As such, he expects MDC to do very well in that market. "Even though these items are not discernable, we certainly have a high level of confidence that our skills are very much in line with where the market is and where it is going — which is in a positive direction." Read more...