LAS VEGAS (KTNV) – For the first time since April, interest rates have fallen below 5%, but home prices are still too high for many.
With home sales slowing in the Valley, many new home builders are offering up to $50,000 in purchase incentives.
Jennifer Graff, the founder of New Homes Experts, thinks the sudden increase in available inventory makes this an interesting time for buyers.
“I don’t think all the builders were necessarily anticipating this kind of shock wave in our real estate market,” Graff said.
Graff says six months ago buyers faced stiff competition, which made it difficult to secure a home.
Now that the tables have turned and buyers are in the driver’s seat, new homebuilders are stepping up their game to help close the deal.
“With that, a lot of these builders are offering really good incentives right now,” Graff said.
Graff says new homebuilders have their own lenders, which means they can do borrowing maneuvers like offering tens of thousands of dollars in cash and buying points to get interest rates. lower on a buyer’s loan.
This can also include covering closing costs and even offering lower fixed or variable rate loans.
“Builders were building in anticipation that they would have demanded throughout the end of the year,” Graff said.
She says instead, demand is weak, inventory keeps rising and, with mortgage rates still high, people have stopped buying and builders are stuck with empty new homes.
Bryan Robles, a local real estate agent, says several of his resale properties could not be sold. He says his sellers must offer buyers credit to use to cover closing costs or lower the rate.
“If they use it for their interest rate they get a lower monthly payment, some of them saving hundreds of dollars a month doing this and it’s a great way to save money that you don’t have to pay upfront,” Robles said.
Graff and Robles say these incentives are unlikely to last long, making this a good opportunity for buyers to use this to their advantage.