New Home Builders Hold Their Ground
The average price of a new home rose 1.2 percent, or $4,300, in February, according to the latest Phoenix Housing Market Letter released by local housing analyst RL Brown.
"If builders were thinking of empty sales offices, they clearly would not be raising prices by an average of $4,300," Brown said. "It's a demonstration that builders are not seeing anything out there that scares them."
At the same time, he acknowledged that more builders are using incentives to keep buyers motivated, such as financing incentives, a new pool or free options.
The average price of new-home sales that closed in January dropped to $306,000, down from $310,000 in December. More...
posted by Arizona Real Estate News @ 11:37 AM
3 comments
3 Comments:
It appears to me that the Phoenix
new Home market is still outpacing the country, thus giving builders the confidence to increase prices. Recently there have been more incentives and allowances being offered.
I agree. The builders here have a lot going for them... Central Arizona, period.
With so many new people discovering Central Arizona and moving here it's no wonder that real estate prices continue to climb even with a "nationwide slowdown" as I've heard it called.
I've also noticed the extra incentives too though.
One really nice thing that has shifted lately is that builders are now offering 3% commission and sometimes 4% to buyer's agents. Back when the market was white hot in 2004 and 2005 I had a builder (Trebd Homes, boo... hiss...) change commissions down to 2% on me. I had registered a client at their subdivision because she liked their homes. But, Trend Homes (boo... hiss...) had not released enough lots to meet the demand, so we were put on a waiting list. When her name was "called", Trend Homes (boo... hiss...) had me re-register her saying that the old registration had expired. Here's where it got real $hitty, they had me sign a registration form indicating I would now only be paid 2% of the base price of the home. Not 3% like our initial registration stated.
When I called the VP of Trend Homes (boo... hiss...) he stated that the homes were selling very well on their own and that Trend Homes (boo... hiss...) no longer felt they needed to offer 3% to buyer's agents in order to sell their homes.
Big mistake on their part.
Now that the white hot market has slowed to a more normal pace, Trend Homes (boo... hiss...) is offering 3% again. But, too late... as the damage has already been done.
I WILL NEVER SELL A TREND HOME (boo.. hiss...) AGAIN. And I sincerely hope that anyone reading this will think twice about them as well.
Matt Pellerin
Good for you!
I had the exact same problem with a different builder here in Madison Wisconsin.
Funny how they change their minds about Realtors once the market shifts either way... #%@&#&$*(#(@
LOL
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