Home builder to raise prices, reduce incentives

08.28.09
By Nicholas Storie

If you were able to survive the economic downturn there have been good rates on mortgage loans and great deals on housing prices, but now that it seems the economy might be improving those benefits may be on their way out.

Dow Jones reports that luxury home builder Toll Brothers has announced that it will raising its prices on new homes and reducing incentives to buyers "in selected communities."

While the news of increased home prices may not be good for buyers looking to get a good deal, it might be a sign that the economy is rebounding with more consumers able to afford the increased prices.

But Robert I. Toll, chairman and CEO of the Pennsylvania-based builder, said there are still deals to be had for people able to make purchases in this economic climate.

"We believe that customers are recognizing that now is the time to get into the market to take advantage of near-record affordability and what is still, for now, a buyer's market," he told Dow Jones.

There has been a boost in new home sales in recent months. This week the Department of Housing and Urban Development reported that the sale of newly constructed homes increased 9.6 percent in July.

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Home prices appear to be on the way up