When we discuss sellers' demise in our blog, we usually do not mention home builders separately. This blog wants to clarify this omission: builders are sellers, they have inventory at all times. When the market sours, they too suffer. Today, major builders were hit hard by write downs, drop in share prices and some announced staff cuts. This is in line with the rest of the market, the only difference is that Joe has one house to sell, builders could have hundreds, even thousands.
Consumer confidence remains low, so the trend toward reduced volume will persist. Bargains in the form of subsidies abound: free upgrades, assistance with closing costs, just to name a few. Individual sellers are at a disadvantage because they cannot match builders' incentives, and as a result will have their properties listed for longer periods.
Builders' defaults could send shock waves throughout the market place and further depress sales prices, i.e. loss of equity.
Are you ready to take advantage of the situation? Call me at 773-562-6972 today.
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