Home builders across the nation are getting hit hard, especially the ones in real estate markets that have seen the greatest downturn. The hardest hit markets include, California, Nevada, Arizona, Florida and the Washington, DC metro area, including Loudoun County. The home builders with the greatest exposure in these markets are facing some of the greatest challenges, which in this area are:
- NVR (NV and Ryan Homes) - 25 percent of company sales
- Toll Brothers - 11 percent of company sales
- K. Hovnanian - 8 percent of company sales
Is it coincedence that three builders are offering some of the biggest incentives and/or have reduced their base prices the most out of all the builders in the area over the past 2 years? I would say it's not a coincidence at all.
Builders are not into carrying inventory and being absentee landlords. They are into building homes and selling them immediately after they have been completed. With the changing market, builders had to do what was necessary to move inventory - offer higher incentives and/or decrease prices. The more exposure they had, the more aggressive they had to be in order to entice the reduced number of buyers.
If you were one who bought a new home from one of these three builders in the past several years, you're proabably not too happy about this news. But if you're a new home buyer in today's market, this is something you should know about and take advantage of. There are some great deals to be had from most builders, especially these three.
For more information about new home builders in the area, their communities, models and lots available and base prices and incentives, feel free to contact me.
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