For the first time in several years, I'm starting to see some inventory from new home builders. The same builders that sometimes couldn't be bothered to pay Buyer Agent Fees or were paying a substantially reduced compensation from late 2020 until just a few months ago, are now advertising again to agents telling us how much they "Love Our Agents". They are sending out daily inventory sheets and even hosting wine tasting events for the agents and brokers with door prizes. It's almost comical to see their level of pandering compared to what we just witnessed as agents and brokers for the last 2 years.
Depending on how much inventory we see come on the market and how fast it gets snapped up will tell us if we should expect either a reduction in pricing or at least a slowdown in price increases, at least for the short term. Long term prices are going up and fast. For more analysis, see my post on whether or not we are in a bubble from a few months back.
While prices have risen as have interest rates, many builders are offering great incentives to help you buy down the rates if you use their own internal or their preferred lender. These are changing constantly but email me to see what kind of deals to expect right now.
It took 8 years to see my house double in value in Prosper, I built in '11 with Khov. But in the last 24 months just about everyone has seen their home about double again. My home, which I built in '11 for $368k is now conservatively worth $1.1M. Remember, inflation reduces your purchasing power, but inflation also inflates hard assets. In an inflationary environment, a home is your best way to protect you against rising rents and the best way to protect your net worth.
In 1977 my father purchased a home in Connecticut for $100k. Inflation was very high and a stagnant economy was the norm, hence the term stagflation. Interest rates hovered around 20%. Yet in 1984 he was able to sell for $250k. That's 150% in 7 years, despite interest rates that are almost 4 times our current rates. That home today shows valued on Zillow around $1.6M.