The Business Journal reports on the Greater Triad area in North Carolina. "With the growth of new home sales in the Triad starting to slow, national builders are unveiling large-scale promotions and deep discounts hoping to lure buyers to their developments. During a special 12-hour sale last month Centex Homes offered buyers more cash in their wallets, lowering the cost of homes scheduled to be completed in February and March by as much as $30,000."

"K. Hovnanian Homes is wrapping up a promotion under which buyers at any of its 25 Triad neighborhoods receive a voucher for up to $16,000 in furniture from Rooms to Go. Hovnanian is the Triad's second largest builder. 'It is overwhelming what they are offering,' said Elizabeth Ward Small, a Burlington-based broker. 'They are doing anything they can to draw a buyer.'"

"Most local home builders and real estate agents say they don't believe the incentives are a sign of a weakening housing market. Rather, they see it as an indicator of a strong market where builders are getting more competitive, especially in booming areas like eastern Guilford County where new subdivisions are filling up with home in similar price ranges."

"There are signs that growth could be slowing. Last year, 5,100 new homes were sold in Guilford, Forsyth and Alamance counties. That was a 9 percent increase over 2004, but a long way from the 23 percent growth in new home sales seen between 2003 and 2004. 'I think everyone is fighting for the customer because we don't have as many customers,' said Jan Cox, a Greensboro-based broker."

"That sentiment is echoed by Scott Wallace, president of Greensboro-based Keystone Homes. who estimates his company is getting 50 percent fewer visitors to its neighborhoods than just a few months ago. A slowing housing market will likely put more pressure to increase sales on builders like Centex and K. Hovnanian, which are publicly traded companies and need to meet shareholder and analyst expectations. That could mean the Triad will see even bigger discounts and incentives from these companies in the future."

"'When I open the paper and see that $16,000 (K. Hovnanian furniture) ad, it makes me cringe,' said Wallace with Keystone."

"Such incentives do have an impact on how buyers perceive the market across the board. Many local builders said they have prospective buyers come in wanting to know what specials or promotions they are offering, and if they are as lavish as they ads they've been seeing. 'Obviously it puts our sales people in a position to discuss things we would rather not to discuss,' said Tom Hall, president of Greensboro-based Windsor Homes."

"To counter such questions, local builders say they seek to change the subject, emphasizing the quality of their homes and the possible benefits of doing business with a local company, as opposed to a national corporation."

"Sheri Bridges said that once an industry begins these kinds of promotions, it's difficult to back away from them. Bridge compares the incentives home buyers are offering to those offered by auto makers. As the economy started to improve, the manufacturers announced they would no longer offer large incentives to buyers. Car sales quickly began to decline again. Bridge says if the large builders give away too much now, home buyers will expect the same incentives in the future and may not buy without them. 'It conditions consumers to expect a deal,' she said."