Thursday, July 5, 2007

Housing Prices AP Story

This is a very interesting article with regards to housing data. They raise a very good point that there are incentives being offered to buyers that aren't being included in survey data. Locally, I'm aware of builders offering upgrade packages, cars, and more to entice buyers.

The article misses the increases in bonuses and sales commission to Realtors. Locally, we've seen a change from some builders refusing to pay co-broke commission at all to offers of 8% and even 10% co-broke. That in addition to enticements as strong as a brand new gold Rolex watch.

However, I don't agree that this shift is necessarily a sign that the housing market is worse than previously predicted. I just think that it is indicative of a market that needs promotion. The market has slowed and these incentives are simply another sign of that change.

What do you think?

Business -