A colleague of mine who has a second residence in Arizona told me today that he received a card in the mail from Toll Brothers. TOL was offering to reimburse up to $2,000 in travel expenses if the person receiving the card bought a new home in Arizona. Toll must be getting desperate because the only way to get the information needed to mail my colleague was to physically go make copies of the property tax rolls at the County admin offices. He said he had not seen something like this in the 15 years he’s owned a home in AZ.
This is in addition to the massive amount of incentives that these new homebuilders are already offering: free pools in warm States, price discounts and other ‘value-added’ incentives that these companies are throwing in to try and move homes. This is in addition to the fact that they underwrite most of their own mortgages, which enables them to build in subsidized financing.
The housing market is deteriorating quickly, along with the rest of the economy.
This post was published at Investment Research Dynamics on November 6, 2014.
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