Real Estate Community Forum

I just heard many home builders are feeling the housing slump. As a result, many have decided to save money by reducing the choices they offer to buyers. In fact, the nation's second-largest home builder is cutting back on housing options by using standardization and simplification aimed at saving millions of dollars and surviving the housing slump.

All I have to do is look at the new homes they're building around me. These new homes have smaller floor plans and there are no extra added features to add value to the home. To me they all look generic with no style. It's a shame these houses are being built this way, but I suppose its the only way to get new buyers who can afford a new home.

Yes, home builders are modifying their products and prices to meet what the consumer is demanding in today's New Construction market. Just last week, one of our local builders opened up new models in a gated community starting at $120,000 and 1200 square feet. Many of this community's original home buyers are very upset because they bought when the lowest priced floor plan was $240,000.

The builders are also selling off land reserves for future development in order to create some cash flow during this slow period. I believe free market economics will shake out all of the excess inventory and over-inflated values. It's only matter of time.