As a result, homebuilders are slashing prices. About 24% of builders reported reducing home prices, which is up from the 19% last month, said NAHB Chairman Jerry Konter, a homebuilder and developer from Savannah, Georgia.

The weakening market could be a factor that “people are just not walking in and the traffic has stopped in looking at models and looking at houses in suburbs and the subdivisions,” McNeilage added.

Another problem: Climbing mortgage rates have reached nearly 7%, continuing to take a toll on affordability.

Thanks to elevated construction costs and an aggressive monetary policy, home builders are trying to offload their supply quickly. The trend has prompted builders to think about incentives to boost sales.

“I’m getting five to 10 emails or calls a day. It really has picked up,”McNeilage said. “We’re so far into the year, people are trying to make their numbers. And we’re looking at a 10% to 20% discount off of retail pricing that’s being offered to us if we’re buying in bulk.”

These sales conditions are across the country as companies build these homes for specific purposes to sell to investors, according to McNeilage. However, there’s still too much supply on the market.

“Right now, there’s just too much product. Too many houses have been specced that are just sitting on the ground. And these builders really need to move these houses,” McNeilage said. “And folks like us in the institutional rental business are helping these builders by buying up the supply that they have right now.”