Invest in Real Estate in Down Market
Gone are the golden years of bidding wars or listings at unrealistically high prices. For the seller, it’s time to come back to reality and do whatever it takes to sell your home. For the buyer, your time has arrived!
What has caused this slump? It’s actually a combination of factors including high mortgage rates; 30-year, fixed-rate mortgages average over 6 percent, the highest in over a year. Also, tighter standards have been imposed for obtaining a mortgage, thus decreasing the amount of qualified buyers. The overall market uncertainty has created some wary buyers who are content to stand by and watch the housing trends.
With new homes creating about 15 percent of all home sales, there is a glut of inventory in the homebuilder industry. What do stores do when they have extra stock; they have a clearance sale! As a result the market is saturated with buyer incentives offered by over 70 percent of U.S. builders trying to unload their homes. Some of the rather lucrative deals we’re seeing are:
Centex Homes is giving away outdoor living packages worth up to $33,000 to speed sales. Giveaways include decorative concrete patios, wooden arbors, outdoor fireplaces and grills.
Ryland Homes has been advertising “free fantasy vacations” to catch the eye of potential buyers. Purchasers in its subdivisions can choose from trips to the Caribbean, Mexico or Las Vegas.
Ashton Woods is holding the grand opening of its new townhome community of Rockbrook in Lewisville. The first 10 buyers will enjoy $15,000 in options – up from the standard $10,000 incentive.
Grand Homes is offering a free swimming pool or $12,500 in upgrades. For their golf course community of Lantana, they are offering a free golf membership.
American Legend Homes is appealing to football fans by offering a 42-inch high definition plasma screen television.
Other builders are simply chopping prices.
Both Coleman Homes and Grand Homes have recently advertised price cuts of $40,000 to $50,000 on some of their finished houses.
Another major builder, K. Hovnanian Homes, held a nationwide “three-day sale” this month to trim its inventory. They forecasted a sale of 1000 homes and actually sold 2100. They lowered their price to do this, but made up the difference in the volume of sales.
City Homes in Addison is offering $30,000 off the purchase price.
Dallas Realtors are trying to compete with the new home sales by offering their own incentives. VIP Realty is offering a rebate of up to 1.5 percent of the sales price if you use them as your exclusive agent. If you are looking to rent a Dallas Apartment you can also receive a rebate!