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Builders In U S Adjust To Reality Rather Than Spin

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Seiders Economy: Reality Check

Source: BUILDER Magazine

Publication date: 2006-03-01

Housing demand began to fade late last year, and inventories of unsold new homes grew in the process. The shift in the supply and demand has changed the housing market from a red-hot sellers' one to a cooler version in which buyers have more leverage, and the pendulum is not likely to swing back for the rest of 2006.
Price Adjustments
: Most builders prefer not to trim asking prices when demand ebbs, largely because they don't want to upset previous buyers. But our survey picked up some price cutting in response to growing buyer resistance to elevated market prices
Production Mix
: Some builders have reacted to growing price resistance by adjusting their production mix.
: One-third of the respondents said they had increased their use of Realtors/brokers in an effort to maintain sales at current prices
Nonprice Sales Incentives
: Builders also have cranked up various nonprice sales incentives offered to prospective buyers.

A reality check indeed. Same thing going on in the UK but no one is admitting to it. This item features on a main website for the building industry!

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The US seems far more inclined to step up and admit the reality of a stalled or falling property market.

This is healthy and so unlike the mass denial which still grips the UK market.

Edited by Red Baron

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  • 301 Brexit, House prices and Summer 2020

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      • down 5% +
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