Whenver I hear anyone say home prices are holding up up, I have to laugh. That’s like saying the NY Knicks are undefeated (except for their losses).
From CNN Money over the weekend comes this:
David Seiders, chief economist for the National Association of Home Builders
says 75 percent of the nation’s builders and developers are offering incentives.
Those incentives range widely. "Developers will upgrade appliances, put in a
Garland range or a Sub-Zero refrigerator," says Diane Saatchi, a vice president
with the Corcoran Group who specializes in Hamptons properties…
The Associated Press reported last week that a new San Diego condo
development, Atria, was giving away plasma TVs and $5,000 home renovation gift
certificates. Other popular options include fancy kitchen cabinets, granite countertops and
Some buyers, however, may just want money – and those deals abound. "Price cuts are averaging 5 percent to 6 percent," Seiders says, "and 30
percent of all the large builders have cut prices in at least some of their
developments by 10 percent or more."
So while Home prices may look the same, the net to the builder has changed dramatically — as the freebies listed below make clear . . .
NEW HOME INCENTIVES
BUILDER SUBDIVISION INCENTIVES Southwest Homes Ansedonia Up to $20,000 incentives on last remaining homes Meritage Yellowstone 5 percent co-op on standing inventory Ryland Belford $20,000 toward design center, special financing DR Horton Twilight 3 percent toward closing costs with builder lender Pardee Springdale $5,000 closing cost credit with builder lender Avante Pecos Park $25,000 toward closing cost or upgrades with lender Kimball Hill Capella Free membership to Henderson recreation center Lennar Eagle Canyon Special buyer incentives and commissions American Invsco Meridian HOA and taxes paid for two years Toll Brothers Hidden Canyon Swimming pool included with some plans Warmington Esplanade Metro Extra $5,000 incentive on Plan A Innovative Mesa Verde $2,000 Visa gift card, six months HOA American West Royal Highlands $15,000 to $25,000 co-op on list price Pulte Silverstone Ranch Golf membership included
UPDATE: September 11, 2006 7:41pm
Alex points out in comments that Calculated Risk is highlighting a Pulte Homes $99,000 give away on homes priced from $300K+ to $700K+.
Appliances, upgrades, landscaping — it’s all ‘free’
Builders turn to cornucopia of incentives to help keep valley’s home inventory moving
Las Vegas Review-Journal, Sep. 10, 2006
Freebies for home buyers
Home sellers are trying to find creative ways to get buyers to sign on the dotted line.
CNNMoney.com, August 25 2006: 10:13 AM EDT