November 28, 2005

Ponzi Scheme Alert - Prices are being artificially kept high by builders increasing incentives, vs. cutting price


Maybe they're thinking we're not watching? Meanwhile, this report, balanced against today's housing numbers, is very illuminating. Explosion in unsold houses, drop in sales volume, but prices "holding steady". Yeah, right they are...

New-home builders in Greater Sacramento are offering incentives worth up to $50,000 to bolster sales in a slowing market without cutting prices.

The most dramatic deals have come within the last month, says one local housing analyst, and range from paying closing costs to offers of free cars, vacations and swimming pools

Holding the line on official prices lets builders escape resentment from recent buyers who paid the full tab. It also lets builders keep the advertised prices in place in hopes of a better market next year

6 comments:

deweirick said...

The builders are starting to look like auto manufacturer's... Remember the employee discounts...I see red.

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