The inventory of new homes is now at levels last seen in 2007 and that could be good news for prospective home buyers. After all, a surplus of homes means potential deals. And, according to a new report from the National Association of Home Builders, buyers are already seeing some. In fact, 38 percent of builders cut prices in July, with an average price reduction of 5 percent. That’s an almost 10 percent increase from April, when just 29 percent of builders reported reducing prices. Robert Dietz, NAHB’s chief economist, says the cuts come as the new-home market has slowed down. “Single-family housing starts will post a decline in 2025 due to ongoing housing affordability challenges,” Dietz said. “Single-family permits are down 6 percent on a year-to-date basis and buyer traffic … is at a more than two-year low.” But a slow new-home market could mean better deals for summer buyers, as builders look to attract hopeful home shoppers with incentives and lowered prices. (source)
