Asheville Mountain Real Estate Blog

Asheville, NC real estate for sale. Information for buyers, sellers and mountain homeowners, without pressure. Rich content for those who are far away about what it is like to live here through the generous use of media. And some nostalgia with our, "Baby Boomers' Fun Stuff", Thanks for stopping by.

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Location: Mars Hill, NC, United States

A small, highly personalized real estate firm specializing in mountain homes and land in greater Asheville.

Thursday, February 07, 2008

Yet Another New Twist From Builders

A while back, we wrote an article that actually gained some national attention. We examined how the rhetoric and prevailing strategies of real estate change more slowly over time than the actual supply/demand factors would warrant.

In brief, the dialog of the housing market initially avoided any suggestions for lower prices, almost as though the industry and media were afraid to admit that necessity. Instead sellers were advised to seduce buyers with "incentives".

These lures included anything from new automobiles to swimming pools, anything but a price cut. Buyers were not seduced, demand fell, and inventories reached for the sky.

By the Fall of 2007 however, the mainstream media began to speak openly about drastic price decreases as the best weapon. Some went so far as to call it car dealer tactics. All along, it might be said that builders, not individual homeowners have led the way here.

And Now, For Something Completely Different
The Wall Street Journal informs us today of something new, at least to our eyes.
As the housing slump drags on, some builders have a deal for potential buyers: Sign a contract, and if the cost of comparable homes drops before closing, you get the lower price.
This is being led by some fairly large names in the business, it makes interesting reading. One wonders about the exact criteria and mechanisms which would trigger such price protection programs. Some have argued that this strategy means the big builders are not expecting further significant erosion in home prices.

Time will tell on both questions.

Thanks for stopping by,
Black Bear Realty Website
828 689 2055
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