Builders Offering Incentives as Sales Soften

New York, NY, Oct. 7, 2014 -- Home builders nationally have begun sweetening offers in light of slowing sales, according to a Bloomberg News story.

Large price gains in recent years and FHA rules changes regarding the size of mortgages are forcing builders to offer incentives to drive sales.

The story, which focuses on Arizona, details how FHA cut loan sizes in 652 high-cost counties. In Phoenix, the limit dropped to $271,050, about $24,000 below the median prices of a new home, from the previous maximum of $346,250.

In addition, in some areas, builders are competing with a growing supply of previously owned homes as investors withdraw from the market.

Upgraded cabinets and countertops, pools, window treatments and reduced closing costs are often negotiation areas.