I don't suppose it comes as any surprise to anyone that, as a buyer looking to purchase a new home, or a REALTOR searching for his buyer looking to buy a new home, that most New Home Builders are discounting heavily in order to move inventory. As I've noted in several blogs, the Austin metro area continues to outpace most other areas in home sales, but it is beginning to show signs of slowing. The foreclosure rate for the area is increasing, and a lot of people that had been looking to buy a new home will instead go for the much lesser price of a foreclosure. Even the smell of new paint and carpet will not overcome a 20-30% decrease in the market value of a foreclosed home price tag!

The Builders, anticipating this months ago, began offering incentives to both buyers and Realtors as enticements, and to help slow this attrition. As expected, the incentives were much less in the "hot" months from March-July, but starting about 6 weeks ago they really started "upping the ante"! Below are just a few of examples from several "production" Builders' ads:

DR Horton Homes - "5% commission on 30 day closing"; "up to $20,000 in buyer incentives (homes from $180,000-$210,000); "up to $50,000 in incentives (homes from $275,000-$325,000); "{6% commission/buyer closing costs paid"                                               

KB Homes - "$0 down USDA loans still available"; "buyer discounts on ALL ready-for-move-in homes!"; "5% commission"

Standard Pacific Homes - "6% commission on closeout homes"; 5% commission on all specs"; 4% commission on New construction"; $10,000 buyer incentives

David Weekley Homes- "Up to $40,000 in FREE options"; "FREE trip w/airfare and accommodations to Cabo San Lucas"

Drees Custom Homes - "$5000 Realtor bonus on any home sold"; $30,000-$60,000 discounts"

Perry Homes - "$5,000-$25,000 Realtor bonus on all inventory homes"

Mercedes Homes - "Up to $30,000 paid towards closing costs"

Highland Homes - "Up to $30,000 in discounts"

There are approximately 40 "production" Builders in the Austin area, with most offering some type of promotion/discount/incentive. These are just a few examples. For a more complete list, go to Builder Discounts at www.showcaseofhomes.com.