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Valley homebuilders offer big incentives for buyers as real estate market changes

Even though interest rates are higher, housing experts said buyers should look at the rates as a temporary condition.

GOODYEAR, Ariz. — The Valley's new home market is changing. 

Builders are offering up big incentives to get inventory into the hands of buyers, as the average rate on a 30-year fixed is more than double what it was at the start of this year.

This is all happening when not too long ago buyers were competing with multiple offers. Now there are a lot of options and even bonuses when buyers make a deal. 

Goodyear's Estrella community is one in the Valley filled with new houses and deals. It's surrounded by desert, mountains, picturesque golf courses, and welcoming neighbors. 

NFM Lending said the housing market has changed and now is a good time for buyers interested in a new home build. Even though interest rates are higher, housing experts said buyers should look at the rates as a temporary condition.

NFM lending's Ryan Sandell added new builds are a good buy because they understand the current market and they’re traditionally quicker to react than resale properties. 

So, as new home prices are dropping, incentives are being offered for sales. The lender said now is the time for buyers to go in with a plan and execute it.

“You can ask for things and that’s the beauty of it," Sandell said. "I think we lost that. We became order takers on the new home sales or retail side or even lending. Now we get to go have fun with our jobs and negotiate and do what’s best for people.”

Recent new home buyer Nikki Montelongo said she had a much better buying experience recently, compared to back in 2020.

“We just look at it like we know that things will come down again, probably next year so we can always refinance," Montelongo said. "But we might as well swoop in and take advantage of the deals that are out there right now. And we did that.”

Sandell encouraged new buyers to focus on paying a fair market price for the home and then ask about incentives for closing costs or interest rate buy-downs. 

Sandell said new home buyers can push for money off the sale price, rate specials, and then there are 2-1 and 3-2-1 buy downs. That’s when the seller pays the interest difference between the years.

Sandell added to have a frame of reference if you’re looking to buy right now, and think about the future of changing interest rates.

With more choices, new-home buyer Montelongo encouraged buyers to talk to builders, be honest, ask for what they want, and see if they can get it.

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