Builders offering incentives not seen in years on new home construction as market slows

RALEIGH, N.C. (WTVD) — Builders are trying to move inventory and some are sweetening the deal as rising interest rates may be deterring potential buyers.

A new housing report shows nationally that new home sales have dropped 8% from May to June and more than 17% from June of last year.

“We are seeing some price reductions, which we haven’t seen that in a couple years now,” said Compass Realtor Danni Dichito.

Ashton Woods recently slashed prices by $20,000 on a number of available townhomes in one development.

Other builders are offering as much as $10,000 toward closing costs.

“It’s been a huge shift, especially throughout COVID. No incentives were being offered to buyers,” said Dichito.

Some people saidthe incentives are still not enough to combat the inflated marketplace.

“(It’s) not affordable enough at all,” said Raleigh mom Mia Perry.

“I don’t have enough saved because all my money is going toward rent so no one my age, in the 25-30, can really afford to really look to be in the housing market right now. It’s really unfortunate,” said Raleigh resident Sara Rogan.

If you are fortunate enough to get new construction, Dichito says there is an opportunity to negotiate or select the exact lot you want. Before, many developers had a lottery system for where you could build.