How the housing market is turning red and what it means for potential homebuyers

Housing Market Slowdown & Incentives - Home builders are offering incentives like lower interest rates to attract buyers in a slow market [1][5] - 65% of home builders offered incentives last month [2] - The housing market is experiencing a slowdown in both home sales and construction pace [2] - High mortgage rates near 7% at the beginning of the year contributed to the slowdown [2] Affordability & Buyer's Market - The housing market is affordability-constrained due to a 40-45% increase in home prices during the pandemic [3] - Summer marked the strongest buyer's market since 2013 [4] - Low levels of existing home sales are observed due to strained affordability [4] - The number of unsold new finished houses is at the highest level since 2009 [4] Regional Variations & Builder Strategies - Increased housing inventory is seen in regions that experienced booms during the pandemic, such as Texas and Florida [5] - Builders are offering incentives to move inventory in these regions [5] - Builders may spend $30,000-$50,000 or more on incentives like buy-down deals, potentially saving home buyers 10% or more [6]