There was a time in the not so far past where you would see the familiar Builder names for example; Bailey Dutton, Taylor Woodrow, R&K Homes etc. But, with in the past three years due to the housing "Bust" more and more have either packed up and left town or their businesses completely went under.
Leaving the ones who are hanging on for dear life with no other option but to drastically reduced pricing, become more incentivize and "heaven forbid" ask their local Realtors for help!
Even with those great measures it has been very hard for Builders to compete with Bank owned properties that offer Ridiculously low prices to begin.
Most recently, due to the $8k tax credit incentive, Builders are using that advantage to lure buyers to their communities. Some have even purchased teamed up with their preferred lender to purchase bulk interest rates to entice buyers who are on the fence.
Jason Hildago has a report on Builder sales. Read below.
Housing Index Inches Up
By Jason Hidalgo • jhidalgo@rgj.com • August 18, 2009
Builder confidence nationwide inched up in August, buoyed by positive feedback to the federal government's first-time home buyer tax credit.
The National Association of Home Builders/Wells Fargo Housing Market Index rose by one point to 18, the index's highest reading since June 2008. The West region reported a three-point gain to 17. The index measures builder outlook for sales of new, single-family homes for the next six months.
"We're seeing a lot of inventory moving right now, and that's always a positive sign," said Mike Dillon, executive director of the Reno-based Builders Association of Northern Nevada. "But we've still got a long ways to go."
The index's incremental gains indicate slow recovery in the market and also reflect the ongoing challenges faced by an industry still struggling to compete against previously-owned homes. A reading below 50 indicates that more builders have a negative outlook of the market.
Builders particularly are concerned about the expiration of the first-time home buyer tax credit and its impact on the market. The credit is scheduled to end on Nov. 30 -- a deadline chosen in part to encourage people in the sidelines to purchase a new home sooner rather than later. The NAHB now is lobbying lawmakers to extend the credit for one year and also offer it to all home buyers, a sentiment echoed by local builders.
"Not only should they extend the program, but they should expand it for all home buyers, not just those buying a home for the first time," Dillon said. "One of the proposals out there is to also go from the current $8,000 credit to a $15,000 one."
The largest gain in builder confidence was in its sub-index for sales expectations, which rose 4 points to a reading of 30. The increase doesn't surprise given the market's competitive pricing, Dillon said.
Prospective buyer traffic, meanwhile, rose three points to 16 while the index for current sales conditions remained unchanged from the previous month's reading of 16.
"There is definitely a sense of hope among builders that the worst of the downturn is over and that a turning point is near at hand," said NAHB Chairman Joe Robson, in a statement. "The question is what happens after (the tax credit expires)."
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