Home builders are cutting prices on new homes to entice buyers. New construction accounted for 7.6% of home purchases last year, down from an average of about 16% over the past 20 years, according to an article in the Wall Street Journal.
Home builders have been hit hard by the recession as many people looking to buy homes have turned to foreclosures, which can be found just about anywhere in the country.
Folks looking to take advantage of the home buyer tax credit this year shouldn't rule out new home construction. Even if you don't qualify for the tax credit some of the deals being offered may be worth pursuing. Home builders are offering cut-rate pricing to move inventory.
According to the Journal article, Meritage Homes in Maricopa, Ariz., is selling three-bedroom houses that start at $99,900, half the price they would have been four years ago. KB Homes is selling new homes in Las Vegas for $150,000 to $170,000, way below the $400,000 price tag the would have carried before the housing market tanked.
If you don't want to deal with some of the surprises and headaches that can come with purchasing a foreclosed home, it may be worth your while to starting visiting communities with new homes. Who knows, maybe you'll be able to get a few upgrades thrown into the deal if you decide to buy.