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More Builders Say They Offer Incentives To Buyers
Dated: October 20 2022
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A new survey of home builders found a rising number said they’ve begun offering incentives to buyers, including mortgage rate buydowns, complimentary amenities, and price reductions.
The National Association of Home Builders conducts a monthly survey of builders to gauge their perception of the market for newly-built single-family homes. The NAHB’s Housing Market Index is a closely followed indicator since builders have a unique perspective on the new-home market.
According to the results of their September survey, home builder optimism fell from the month before as the housing market continues to adjust to higher mortgage rates and home prices. Robert Dietz, NAHB’s chief economist, says because of the current market’s challenges, there’s been an increasing number of builders offering incentives to buyers. “In this soft market, more than half of the builders in our survey reported using incentives to bolster sales, including mortgage rate buydowns, free amenities, and price reductions,” Dietz said. It’s true. The number of home builders reporting that they reduced prices rose to 24 percent in September, up from 19 percent the month before.
That’s encouraging news for prospective buyers interested in purchasing a newly built home.
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