$25,000 Incentive To Buy| Rapid City Real Estate News 10/4/2022 with Christian Morrison

They are now incentivizing you as the buyer, to come in and buy these houses. I've seen incentives up to $25,000.

Hey guys, what's going on? Welcome back to Rapid City Real Estate News. We are in the first week of October, crazy to say that, to be honest with you it blows my mind that it is already October, but, if you don’t know me, my name is Christian Morrison. I am a local realtor here in the Rapid City/Black Hills Area. I do this Rapid City Real Estate News just to help everybody that is curious about real estate in the area, keep up with it, what's going on, what's actually happening, not just what the talk around the town about what's happening is. That’s basically what it’s for. 

So, I am going to jump straight into the numbers this week, and then I have a couple things to talk about on new construction, specifically, that are pretty interesting that have happened in the last week or so, but in the numbers, couple interesting numbers for today, interest rates are up another .25% since last week, so they are at 7.06% right now. So interest rates are still up there. Average days on the market is down slightly, 23 from 25, I think, so a couple days down on that. Now here are a couple numbers that are interesting to me, these other 4 numbers, because I was talking to someone yesterday, who sells a bunch of houses in the Phoenix market, in Arizona. They were telling me that every single month right now, and every single week, they are getting around 3000-6000 extra houses, which it’s a giant area, so that would probably be the equivalent of 30-60 houses here with the population difference, extra per week and per month that are sitting on the market and not selling. So they are having houses stack, stack, stack, they said 6 months ago they only had around 3,000 houses on the market and right now they have about 50,000 houses on the market. So, that area is seemingly going to go down in value pretty quickly, if that continues to happen, and stuff isn't selling. It was also one of the areas that went up the fastest, over the last couple years. 

Here, and you know, everyone has these speculations that the whole market is crashing, definitely possible, it probably will in certain areas. Here, these last 4 numbers are the reason I don't see that happening currently. 31 houses hit the market, which is less than we have seen in the last few months. So less houses on the market, which is somewhat normal with the time of year. So some of that has to do with that, but quite a bit less houses on the market, 31. We've been in the 50s-60s in the previous couple of months, so 31 is really low. 5 of those sold, so only 5 went under contract out of the new houses on the market. 26 houses actually sold last week, so almost a wash there, actually a little bit negative with houses on the market vs houses sold. 191 total active houses, so that's super low numbers for us still. I think I said last week that in 2019, so before the 2020-2021 market boom or whatever you want to call it, we would have 500 houses on the market, 400-500 houses all the time. So we still only have 191 houses on the market, and last week we had over 200, we had like 210. So we aren't stacking on top like they are in the phoenix area, we are actually dropping now, with the amount of listings we've had in the past few weeks and months. We are actually starting to go down again on houses in the market. So even with the interest rate going up, houses on the market are still going down. I've got a few people tell me, “the top end of the market is going to be affected the most, anything $500,000 plus, that stuff won’t sell, because the interest rates are so high.” To be honest, those houses are selling faster, almost, in certain areas, than the lower priced houses, so I don't think that is true either. There was a house that went on the market for I think 1.1 million and had multiple offers on it. So these interest rates obviously aren't scaring off everybody. Or too many people at all it looks like. 

Now let's get into something interesting that i have been seeing with new construction, with these builders out here, they are getting to the point where they are, maybe not desperate, but they really want to sell these houses, and they are now incentivizing you, as the buyer, to come in and buy these houses. I've seen incentives up to $25,000 in closing cost assistance, upgrades whatever you want to choose, in some of these new builds, that right now will go toward your house, and you know, 6 months ago they were saying “no incentives, nothing for you.” And now some of them are offering $25,000 as an incentive, which is amazing. And I am thinking, moving forward, if you want to go the new construction route, you are probably going to be able to get a good deal on some of these. They built so many and then had so many people back out of them because they couldn't afford them with the new interest rates or whatever the case was at the time, but you could probably pick one of these up for a good deal, especially right now and through the end of the year. So if you have contemplated the new construction route, you might really consider that at the moment. Now I don't know what is going to happen moving forward with new construction, but that is currently where it is at, and what I have been seeing. There are actually quite a bit of new construction houses on the market, I'll put a link below to all the new construction that is available. I want to say there are like 40-50 of them currently available, and some of those are already done and ready to move into right away. So that is a luxury that we haven't seen in a couple of years. Now speaking of that $25,000 credit you could get, you could use part of that, if not all of it, toward an interest rate buydown as well. If you are getting that credit from a builder and you are worried about interest rates, you can go look at last week's video, I break down what that means to get a credit for your interest rate or to buy down your interest rate. These scenarios, you could probably buy down a whole percent, or even more with that $25,000. So that could be an option for you as well, to look at getting that from the builder, which would be awesome for you!

Alright guys, that's all I got this week. I look forward to seeing you guys next week. As always if you have any questions, looking at buying or selling, whatever in the black hills, shoot me a text, or an email. I have all my information down below this video. See you guys!