Ram Konara, a real estate broker in suburban Dallas, is raking in freebies this year: trips to Lake Tahoe and Santa Barbara in California, Cabo San Lucas in Mexico, and a dude ranch in Wyoming.
The homebuyers he represents are cashing in, too. They’re winning price cuts of more than $100,000, on top of free upgrades such as media rooms, cabinets, and blinds.
This generosity flows from increasingly desperate homebuilders, Bloomberg reports. Hot markets are cooling fast as interest rates rise. In the great housing slowdown of 2018, shoppers are reclaiming the upper hand, after years of soaring prices that placed most inventory out of reach for many families.
“Everybody is hungry for the buyers,” Konara says.
From builders’ perspective, the news is discouraging. Of course, rising wages may help put more houses in reach. Starter homes are still in demand, and some smaller, more affordable markets such as Columbus, Ohio, and Grand Rapids, Michigan, remain as strong as ever. But the shift is especially striking given the robust U.S. economy.
