newconsearch.com has reported deep price cuts on new homes through the year, up to 40% in some instances. Now, as the year comes to an end, developers with inventory homes are advertising even more cuts to attract buyers in the present market. Many must unload considerable inventory by year's end.

This past weekend, we saw one leading builder in the SE Florida market advertise a weekend sale with price cuts up to 21% over the posted price of each model on its website. Why so deep? And Why now?

Empty new homes that go unsold over the New Year have high carrying costs for the developers who now must pay taxes on improved lots, as well as carry the cost of electricity, water, trash removal, landscaping maintenance, and general upkeep including pest service. It all adds up.

As for price cuts in the condo market, just have a look at this two-minute You Tube entry on a recent Miami auction:

Bottom line: If you know someone who needs a home, you may help them drive the best deal right now... before the end of the year.