T
he housing market has reached a tipping point, with builders holding onto a record number of unsold homes. As of February, over 119,000 completed properties sat idle, waiting for buyers to snap them up. To entice these customers, developers are rolling out the red carpet – or rather, the incentives. Mortgage rate buydowns, closing cost credits, and cash towards upgrades are just a few perks being offered to sweeten the deal.

    In some cases, builders are taking the drastic step of slashing prices, a move they typically avoid as it can cannibalize sales from earlier buyers. However, with inventory levels at an all-time high, the tables have turned in favor of homebuyers. The market's shift is particularly pronounced in areas where prices plummeted during the pandemic-fueled housing boom.

    In cities like Austin and San Antonio, real estate agents are reporting a surge in new construction sales, thanks to aggressive pricing and creative financing options. For instance, buyers in Killeen, Texas, can snag new homes for $50,000 less than their 2022 counterparts, making them more attractive than older properties.

    As one builder noted, the current market has left developers with inventory that's "very difficult to sell." This has led to a slowdown in construction activity as builders focus on clearing their backlog. While this may be a buyer's paradise now, it remains to be seen how long this trend will last.