3 replies to this topic

[Drano]

PHM in the Minneapolis area is offering a "weekend sales event" --

10 DOLLARS down, 10% off list price of home, and 10,000 bucks toward closing costs.

I guess that's one way to try to get rid of inventory.

Anybody aware of that happening elsewhere?

[Cirrus]

Here's the problem...you will never relieve an oversupply problem by dumping even more inventory at lower prices. I see this in my market, also. Builders still doing everything they can to keep selling inventory. There is simply very little demand.

[tommyt]

bubbles/manias have to play out naturally, even government intervention, can work short-term, but then magnifies the problem and ends up backfiring...I'm just assuming the real estate mania we were in ended, and will be dead for years....like most other cycles. I know there are areas still doing well, but its rotation..all will be hit eventually. And just because it is in its down cycle doesn't mean its going way down, a cycle either goes down or consolidates.

[Data]

The promotion is nationwide. This is the page for the Minneapolis promotion.

http://www.pulte.com...s/perfect10.asp

You're still liable to surrender $10K to the builder if you decide to walk away from the
purchase at a later date. You have to use their in-house lender, in which the closing
costs are probably offset by their higher interest rates being charged. I don't see
the discount off of their listed price as all that significant if you're in a buyers market.

Edited by Data, 20 June 2007 - 06:22 PM.