More than half of builders used incentives to bolster sales in May

Home Builders

NAHB Now

The NAHB/Wells Fargo Housing Market Index (HMI) survey conducted in May reveals that more than half of single-family builders are using incentives to bolster sales and/or limit cancellations. This is essentially the same share of builders that were providing incentives during normal market conditions in 2003. By contrast, the percentage of builders providing sales incentives was far higher during the Great Recession.

The May 2020 survey reveals that 48% of single-family builders are not using incentives to bolster sales and/or limit cancellations. This of course implies that slightly more than half, 52%, are using some kind of incentive to achieve that objective.

What specific incentives are they using? Figure 1 shows the complete list, but the three most likely are:

  • Options or upgrades at no or reduced cost (19% of builders report using)
  • Payment of closing costs or fees (19%)
  • Price discounts/Margin reductions (18%)

READ ON:

Share this!

Additional Articles

Rose Law Group pc values “outrageous client service.” We pride ourselves on hyper-responsiveness to our clients’ needs and an extraordinary record of success in achieving our clients’ goals. We know we get results and our list of outstanding clients speaks to the quality of our work.

News Categories