While some indicators show that more people are moving thanks to the improved state of the economy, builders are still somewhat skeptical.
According to the National Association of Home Builders
Housing Market Index, builder confidence dipped slightly in April as uncertainty still has a grip on the real estate industry.
"The spring home buying season is getting off to a slow start due to persistent concerns about home values as more foreclosures seem to be hitting the market, increasingly restrictive lending requirements for home buyers and builders, and the slow pace of economic recovery,” said David Crowe, chief economist for NAHB.
Crowe went on to say that the best sales activity is occurring in areas where prices are being cut in order to lure potential homebuyers.
And Trulia.com, a real estate listing site, found that price cutting has become very common throughout the country. For instance, according to its Home Offer Report, there's a 56 percent chance sellers in cities like Phoenix and Mesa will drop the asking price for a property even after the first price cut.