Following a year in which Boca Raton FL home builders couldn’t build fast enough to keep up with demand, new-home sales are slowing and cancellations are rising. The shift is prompting builders to offer everything from status automobiles to free granite countertops, stainless steel refrigerators, cash incentives and discounts.

Industry analysts say leading home builders all around the country are resorting to incentives to spur sales. Home builders also are cutting their 2006 earnings forecasts as shares slip from the record highs of June 2005. DR Horton Inc. (NYSE: DHI, $20.85) shares, for example, have lost half their value since reaching a 52-week high of $42.82 in July 2005. Also at issue is concern the Federal Reserve will raise short-term interest rates a quarter-point to 5.5 percent at its Aug. 8 meeting, further dampening new-home demand. There was hope on that front Wednesday, when Federal Reserve Chairman Ben Bernanke’s testimony before Congress indicated the Fed might pause now, sending markets sharply upward.

Real estate agent Caesar Parisi stands ready with effective advice on buying or selling a Boca Raton FL condo. Visiting the Delray Beach community? Contact Realtor® Caesar Parisi for information on buying or selling an Atlantic Grove Condo in Delray Beach Real Estate.

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