CANE RIDGE, Tennessee (WKRN) – Mortgages have gotten more expensive after the Federal Reserve raised interest rates this week, and a homebuilder in mid-Tennessee is saying they are having to adjust.
Regent Homes says we’re in a buyers’ market, and they’re offering some great financial incentives starting this weekend to get buyers into a home.
President and Chief Manager of Regent Homes, David McGowan’s family has been building homes for decades. But after all these years, this weekend is the first time he’s offered a cash incentive he calls flex cash. And he hopes that will lead buyers to new properties like Burkitt Ridge.
“Helping someone into a new home, that’s what we want,” McGowan said. “What we’re finding is that young millennials who need housing and move to Nashville to work need money for different reasons.”
Flex cash allows the buyer to choose where to put the money. Up to $16,000 can be used to lower the interest rate, closing costs or upgrading the house – their choice.
“Buyers are being affected by what the Fed has done to rates, so we’re trying to do what we can for them,” McGowan said. “People who qualified in the past for a $500,000 loan, today they can only qualify for a $450,000 home.”
John Giovannetti leads Burkitt Ridge sales and has seen a change. Last month he was selling an average of one house a day, but this month, he says, it’s more like every day. Still, he says shoppers are heading for the high street — they’re just looking for incentives before signing on the dotted line.
“If they’re looking for help closing costs or lowering the fee a little bit, that’s what we’re doing. Trying to help them get into a new home,” said Giovannetti.
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While demand is high in Nashville, Regent Homes says we’re still experiencing a correction in the housing market.
Source : www.wkrn.com