10 US Metro Areas Where Home Builders Are Cutting Prices
Even as existing-home prices hit record highs, new-home builders in select metro areas are slashing prices to move inventory.
Existing-home prices have climbed to a fresh record high across the United States, yet buyers willing to consider new construction may find an unexpected opening: builders in at least 10 metro areas are actively cutting prices to close deals and reduce unsold inventory.
The divergence between the resale and new-construction markets reflects the uneven pressures weighing on homebuilders. While established homeowners have little incentive to sell into a high-rate environment — keeping existing supply tight and prices elevated — builders carrying finished or near-finished homes face carrying costs that make price reductions a more practical tool than waiting out the market.
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The dynamic underscores a broader tension in housing: record resale prices coexist with pockets of softness in new construction, particularly in metros where builders overbuilt relative to local demand or where affordability has stretched buyers to their limits. Incentives such as outright price cuts, mortgage-rate buydowns, and closing-cost assistance have become common tactics as builders compete for a shrinking pool of qualified buyers.
For prospective buyers priced out of the resale market, the new-construction segment in these ten metros could represent one of the few avenues to purchase at or below recent listing prices. Analysts warn, however, that discounts vary widely by location and product type, making market-by-market research essential before drawing conclusions about broad price trends.
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