“Buy one, get one free,” advertises the small yellow blurb, tacked to the main entrance sign of the Cider Mill development on Landing Road outside Elkridge.
The promotion actually refers to optional add-ons to the community?s single-family homes, not the homes themselves. But such incentives are one way Howard builders have supported sales of new homes and condos in a sluggish market.
“I think the ones that do better are the ones that have a better promotion going on, or can address that more positively than others,” said Jim Finecey, community sales manager for Cider Mill, built by K. Hovnanian Homes ? in the $700,000 price range. “I think it?s somewhat less of an emotional buy now, and more based on, ?I think I?m getting a good buy now, because ? I?m getting this and this.? ”
Howard County sales and home prices are dropping, but Finecey said Cider Mill sales met company goals this year of two per month, a target based on market conditions.
In its recent community developments, Columbia-based Altieri Homes has offered to take half off of home add-ons up to $40,000, said John Shipley, sales and marketing director for the company. And while Howard County sales have been generally solid over the last year, Shipley said even there, developers have begun pushing new incentives to homebuyers.
“A year ago, you were doing maybe $5,000 toward closing,” he said. “The market?s definitely changed, you have national [companies] that are just dumping homes. There?s certain areas in Maryland where the discounting is even heavier.”
The highest-end new homes may not include such incentives, however. Dale Thompson, founder of Columbia-based Dale Thompson Builders, said his projects, with an average value of $1.85 million, have been moving without them. His company hasn?t seen any increase in home prices in two years, he said, but volume increased 10 percent since last year.
“Our competition is doing [incentives], yes,” he said. “They have the enticements, but they?ve always done the free sunrooms. But they?re blowing the free sunroom horn louder. And it?s working for them.”
By the numbers
» Howard saw the Baltimore metro area?s largest price drop in August, falling 4.37 percent to $418,238 from $437,335 last year.
» Also, the area suffered the largest total drop in sold dollar volume, falling 36.9 percent to $80,301,679
» Total units sold in the county dropped 34 percent to 192 from 291.
Source: Metropolitan Regional Information Systems Inc.
