By Tyler Durden | 23 November 2018
ZERO HEDGE — As US home sales begin to cool off, homebuilders have begun to panic – offering price cuts of more than $100,000 along with free upgrades such as media rooms, cabinets and blinds – reports Bloomberg.
That’s not all, real estate brokers are being enticed with free vacations such as trips to Lake Tahoe, Santa Barbara, Cabo San Lucas and even a dude ranch in Wyoming – all in the hopes that they will steer buyers towards houses in slowing markets.
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. –Bloomberg
Builders are definitely feeling the heat right now, as new home purchases dropped in September to the weakest pace since December 2016. Meanwhile, previously owned home sales dropped for a sixth straight month – the worst streak since 2014, according to Bloomberg. Investors in homebuilding stocks are also feeling the pain, as the sector has lost more than a third of its value this year. […]