Homebuilders currently have a surplus of unsold homes, the largest since the Great Recession, offering buyers the opportunity to find good deals in certain regions. In February, around 119,000 completed homes remained unsold, prompting builders to entice buyers with incentives such as mortgage rate reductions, credits for closing costs, and funds for upgrades. Some builders are even reducing prices, a move they typically avoid because it can impact earlier buyers.

Although most large builders aim to sell homes before completing construction, they also construct some properties on speculation, known as "move-in ready" or "inventory homes." These appeal to buyers who cannot wait months before moving and help builders manage costs during uncertain periods.

The inventory of unsold homes has been increasing steadily since early 2022, as builders responding to pandemic-induced demand faced higher mortgage rates and declining affordability, limiting potential buyers. While the current market favors buyers, this situation may not last long. Many builders are slowing down construction activities as they work through their existing inventory.

Scott Turner, the owner of Riverside Homes in Austin, Texas, notes a significant drop in home prices in the city's urban areas, affecting builders' ability to sell inventory and leading to a slowdown in new construction starts.

Buyers in Killeen, Texas, are benefitting from lower prices on new construction homes in suburbs, with builders offering incentives like mortgage rate reductions to attract clients who were originally considering older homes.

Khadija Najmi, a project manager, and her husband opted for a new construction inventory home in San Antonio after moving from Dallas. They received a mortgage rate buydown, allowing them to afford a larger property than originally planned.