Home builders sell excess homes in bulk to investors at a 20% discount

Posted on October 10, 2022   |  

• Builders are keen to sell thousands of completed or planned homes at discounts of up to 20% and reduce inventory as the traditional family buyers are backing away with mortgage rates at a 15-year high.
• The mortgage interest rates are reaching 7% due to which buyers are disappearing from model home showrooms across the country.
• As a result, builders will have too many homes and land inventory on their hands, and in August, there were 14% more homes under construction than there were a year ago when the sales market was more robust.
• Buying homes in bulk instead of scattered is easier for investors to manage. Their purchases of handfuls of completed houses, empty cottages, or even whole communities can help builders in up and down markets.