Damn, a Black Friday for Real Estate?
new home inventory is the highest since 2007. 🤔
3.99% for an fha loan ( Buyers with credit, income, down payment challenges)
4.25% Conventional.
To give you an idea FHA today is around 6.375% and Conventional is ~7%
So the Builders prop up sales by buying down the borrowers interest rate. A buydown of over 200 bps will cost you around $35000 cash up front, which the Builder pays for the Buyer. Fantastic edge. But it’s hocus pocus, voo do shet because the Buyer is probably paying for that Buydown in the price. What a rat fucking, you pay for the Buydown over 30 years 😂. Builders have strategically slowed down new builds to keep the market tight. Why don’t they just reduce the price of the house by the same amount used for the Buydown? Doesn’t work for them that’s why.
Inventory numbers are interesting considering what they were less than 2 years ago…. Lol, you know me, I only look at price. Total cost- out the door- final price…. Same when I buy a car. I tell the salesman I plan on financing the vehicle through the dealer 😂 Not a lie since I usually do end up giving them a 1 month interest payment. Also negotiate the maximum amount I can put down on my credit card. And finally, before I drive off with my new vehicle, I search the entire show floor for loose change,,,, and don’t forget the vending machines in the break room.
So true, it’s like Macy’s giving you 80% off the price they first marked up 200%.