Single-Family Homes
Builders across the country are combating inflation and high interest rates by offering mortgage rate buy-downs, incentives, and deferred payments to avoid cutting prices to preserve value. Although inventory has been back-logged and closings are up across the country, production builders like Lennar and Toll Brothers have decreased housing starts for upcoming quarters.
First-time homebuyers are ‘waiting out the marketplace’ and renting instead, driving up the need for multi-family housing (which some builders are addressing).
Luxury homebuyers are less affected by rising rates with cash for down payments and excellent credit scores. A year ago, builders and developers were cutting Realtor® commissions and shifting to flat referral fees as onsite sales teams were simply ‘order takers’. The marketplace has shifted back to builders NEEDING Realtors®, making this the perfect time to create lasting relationships with onsite new community teams.
Did you know?
The top 100 builders nationally now account for nearly half of all new single-family home sales, up from 1/3rd two decades ago. Most of these gains reflect the growing market share of just two home construction companies – D.R. Horton and Lennar, who made strategic acquisitions and concentrated expansion in the country’s 50 largest metro markets.
