Denver Homebuilders Continue with Heavy Inventory

Denver area homebuilders continue to experience heavy inventories of new homes. Sales declines of new homes have followed a downward path much like the recent resale residential market. Buyers are waiting out the market as a result of reading the negative press articles, hearing that interest rates may increase, and experiencing a longer time to sell their existing single family residence or condo. Meanwhile, homebuilders are finding that potential buyers are cancelling their contracts to purchase that new home. "Through June, Denver builders saw an 11.1 percent decline in sales to 11,017," according to the Denver Post.

Those who are ready to buy will find homebuilders giving incentives such as deep discounts in the purchase price or offering free options. (The end of the year is approaching and publicly stock traded builders will not want to be caught with unsold homes on their books at reporting time).

Of course, the builders continue with competitive financing. It is a buyers market, so be ready to negotiate for a better price. Builders are sometimes offering much higher commission rates as an incentive to real estate agents to bring them buyers. Hint to the Buyer: Ask that real estate agent to part with some of that commission to get an even better deal. Please, agents, do not flood me with comments. After all, we recommend any new buyer to utilize an experienced REALTOR to assist with reviewing the contracts and to conduct negotiations.
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