Housing Starts Rebound, Builders Aim to Win Buyers Back
About a quarter of homebuilders are reducing their prices to attract more buyers as foot traffic falls—single-family construction jumped 3.4% in last month, the Commerce Department reported this past week. Economists are calling it a “surprising bounce back” after five consecutive months of declines.
More than half of builders surveyed say they are using incentives to bolster sales, including offering mortgage rate buydowns, free amenities and price reductions, according to the NAHB/Wells Fargo Housing Market Index.
“This month’s increase in housing starts implies that builders still see profit opportunities, even as they concede on prices,” says Lawrence Yun, NAR chief economist. “Material prices, including for lumber, have been moderating, and fully completed homes are selling fast.” Unfinished homes that remain under construction are the ones sitting on the market for long periods, Yun adds.
Source: National Association of Realtors, magazine.realtor
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Before you visit a new construction site or contact the builder, give us a call at 267‑759‑9518. Buyer representation by the John McClintock Team will help you identify which builders may be prepared to negotiate. We know how to communicate with builders during this unprecedented market. And the best part is, our buyer-agency fee is already factored‑in to builders' prices so you're paying for 3rd‑party advocacy whether you use a buyer agent or not.