Builders are reluctant to finish a project let alone start a new one at this point. Some say the market has gotten so tough that there is absolutely no financial incentive for builders to continue because at this point their losing money. Contractors and investors who have to resort to auctions to sell their homes are sometimes getting 50-60% of their asking prices while others begin the auction at 60% of the asking price. Currently, new schemes such as “name your price sales” and beating any developments price are not working. Even community outreach with free food and fun is not attracting buyers, people yes, but not buyers willing to risk it in today’s risky market.

While the Contractors and investors are worried bargain hunters find this a perfect opportunity to score. The flood of foreclosures and auctions are attracting the attention of bargain hunters and forcing existing-home prices down so much that those homes are getting more attention from potential buyers, but still the attention is not wide spread or enough to pull out of the market slump. Those in the business recall a similar situation in the early 90’s and counter that the market boomed again, and the existing slump is all just a part of the housing market trend.