As the real estate market has begun to cool down, many builders are throwing incentives to prospective buyers to see who will bite. Some are including pools or built-in barbecues. Meanwhile, others are agreeing to cover up to $10,000 in closing costs or subsidize mortgage rates. From Sacramento, California to Orlando, Florida builders are doing their best to entice buyers. They do this by providing more freebies for new homes.
Throughout the country, new-home sales have been spotty, plummeting in June before making its come back in July and August. Moreover, after investors pushed properties prices up and the FHA limit was lowered, builders are having a hard time selling new homes. Even with the incentives. There are some contractors who are refusing to give any stimulus to home buyers. Furthermore, they stand by the fact that a new home is alluring enough.
In fact, the federal government cut the FHA loan size of 652 major U.S. counties this January. They did this to attract private capital back. Furthermore, many of the counties where lowering of the FHA happened were cut below the median price of new-home values. So, this makes it harder to sell new homes and many buyers to purchase. However; existing home sales did increase because of the same FHA cuts.
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