Homebuyer Perk Alert: 31% of homebuilders cut home prices and 57% gave buyer incentives in February

 

National Association of Homebuilders chief economist Robert Dietz noted today that homebuilder confidence grew for a second straight month even with materials supply chains still jammed.

One reason is rates coming down from 7%+ in October to 6% early February (though rates have spiked to 6.625% since last week).

Robert also shares stats that are beneficial for homebuyers:

– 31% of builders reduced home prices in February

– The average price drop in February was 6%

– 57% of builders offered some kind of incentive in February

These incentives can be things like seller credits at closing and home upgrades.

It’s a good time for buyers to make deals with builders, and it’s critical to note that these February homebuilder price cuts and incentives have decreased from December and November levels.

This combined with 2 months of growing homebuilder confidence means there’s a good window for buyers to negotiate as we move into Spring home buying season. But if builder confidence continues, that window could close.

Hit the link below for details on how Robert and his team calculate the homebuilder confidence scores, and what this means for the market.