Saturday, October 24, 2020

Tag: Homebuilders Cut Prices to November 2015 Level to Boost Sales

Up to Their Neck in Inventory, Homebuilders Cut Prices to November 2015 Level to Boost Sales

by Wolf Richter, Wolf Street:

Making deals where the buyers are. And the buyers are at lower price points.

It’s homeowners and the pros – the homebuilders. Yesterday, we got data on sales by homeowners: Despite plunging mortgage rates and ample inventory, sales fell for the 16th month in a row, but prices rose to a new record. After surging 52% in seven years, prices are too high and are hitting demand. Today, we got data on sales of new houses by homebuilders: They’ve chopped their prices to the lowest levels in years to prop up sales, as they’re loaded with inventory that they have to sell because that’s how they make their living.