08/04/2021

Southern California builders are cutting prices to move glut of unsold homes

Faced with the largest inventory of unsold finished homes in six years, Southern California’s homebuilders have resorted to price cutting.

According to real estate watcher Zillow, 25.9 percent of new homes on the market in Los Angeles and Orange counties in the fourth quarter had price cuts — No. 17 of 34 major markets studied nationally. In 2018’s first quarter, 19.5 percent of homes were discounted. In Riverside and San Bernardino counties, 28 percent of new homes had price cuts — No. 11 nationally. In 2018’s first quarter, 27.2 percent of new homes had price cuts.

Builders typically cut selling prices as a last resort, preferring to lure customers in slow times with concessions on everything from mortgage terms to home upgrades. But this isn’t another Southern California real estate quirk — it’s a nationwide trend as 25.1 percent of new homes had price cuts at year’s end up from 19.2 percent of new homes at the start of 2018.

View Article