Your Money Minute Price Cuts On Newly Built Homes 7/16/25
Jul 16, 2025
Newly built homes are seeing significant price cuts, with 37% of builders dropping prices by an average of 5%. This change is a response to a slowdown in the real estate market. However, potential buyers still encounter challenges, especially in securing loans despite lower mortgage rates. It's a fascinating time for homebuyers navigating these shifts!
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Slow Real Estate Market Impact
- The real estate market experienced a very slow spring affecting home sales.
- Builders responded by cutting prices substantially on newly completed homes to attract buyers.
Rising Price Cuts on New Homes
- Home builders have increased price cuts on newly built homes, with 37% cutting prices in June.
- The average price reduction is about 5%, creating substantial savings for buyers.
Price Drop and Buyer Requests at Lenar
- Lenar's average home price in June dropped 9% compared to the previous year.
- Homebuyers often request mortgage rate buy-downs as a strategy to afford new homes.