Free Vacations, $100,000 Discounts: Homebuilders Get Desperate
With hot markets cooling and mortgage rates rising, the industry turns to incentives to boost sales.
A large balloon floats over a sales office at Creeks of Legacy, a housing development in Prosper, Texas, on Nov. 17, 2018.
Photographer: Laura Buckman/Bloomberg
Ram Konara, a real estate broker in suburban Dallas, is raking in freebies this year: trips to Lake Tahoe and Santa Barbara in California, Cabo San Lucas in Mexico, and a dude ranch in Wyoming. The homebuyers he represents are cashing in, too. They’re winning price cuts of more than $100,000, on top of free upgrades such as media rooms, cabinets, and blinds.
This generosity flows from increasingly desperate homebuilders. Hot markets are cooling fast as interest rates rise. In the great housing slowdown of 2018, shoppers are reclaiming the upper hand, after years of soaring prices that placed most inventory out of reach for many families. “Everybody is hungry for the buyers,” Konara says.