Whats going on with the Redrow share price?
The Redrow (LSE:RDW) share price showed some interesting behaviour last week. After initially surging on Wednesday following the release of a trading update, the stock quickly plummeted on Thursday, only to rise again on Friday. Over the last 12 months, its up just over 40% despite the recent volatility. A promising start to a long recovery  Last week, Redrow published a trading update that looked quite encouraging to me. Home completions continued to rise despite disruptions in the materials supply chain. In total, 5,620 homes were built. Thats still less than 2019s 6,443, but its much better than the measly 4,032 built in 2020. As a result, the management team forecast that revenue for 2021 will come in at 1.94bn. And while thats also below pre-pandemic levels, its roughly 45% higher than last year. 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential... The firm is also once again net cash positive, by 160m, making the balance sheet significantly healthier. But what I find particularly exciting is the reduced reliance on the soon-to-end Help-To-Buy scheme. In 2020, this government support programme accounted for nearly 50% of private reservations. But over the last six months, that figure has dropped to 13%. Overall, it looks like the company is making good progress in its pandemic recovery. And so, Im not surprised to see the share price jump on this news. The falling Redrow share price  It seems that a new wave of uncertainty is washing over the homebuilding industry regarding stamp duty. To make homes more affordable last year, the UK government increased the threshold over which stamp duty takes effect to 500,000. This is undoubtedly great news for companies like Redrow, as it can sell its properties more easily. However, since the start of this month, that threshold has fallen to 250,000. And by October will revert to its original 125,000. Meanwhile, interest rates are expected to increase in the near future to tackle the rising inflation levels. And the governments Help-To-Buy scheme is also coming to an end in March 2023. All of this is to say that the affordability of housing seems to be on a deteriorating path. At least in the short term. And thats obviously not good news for Redrows profits or its share price. So, I can understand why some investors saw the recent surge as an opportunity to close their positions. The real-estate market has always been cyclical. However, the need for housing in the UK isnt going away. The rising level of uncertainty is not a particularly good sign. But in my eyes, its ultimately a short-term problem. The last time I looked at this business, my main concern was the firms over-dependence on government support schemes. But looking at the latest trading update, that no longer seems to be the case. Therefore, to me, the recent volatility does look like a buying opportunity for my income portfolio.