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Builders Raising Prices, Limiting Supply

27 Aug

Daily Real Estate News | Monday, April 29, 2013

ImageThose looking to buy new homes will likely start to see price hikes, and possibly a smaller selection. Many of the nation’s builders say they’ve had to increase prices due to the rising costs of land, labor, and materials. 

For example, Pulte’s sale price, on average, has increased 10 percent to $287,000 in the first quarter of this year. Meanwhile, the average existing home price was $233,200 in March, according to the National Association of REALTORS®.

“Builders are feeling pinched by rising costs of key building components which is causing home construction costs to rise at a faster pace than appraised values,” says David Crowe, chief economist of the National Association Home Builders. Some builders are limiting sales in order to keep prices higher.

“We are pricing our homes and limiting the number of lots we’re releasing for sale in some communities to better manage our order volumes relative to our production capacity, and to maximize our profit from those communities,” Meritage CEO Steven J. Hilton wrote in the company’s quarterly earnings report recently.

If you are thinking about buying a new home NEVER…NEVER go to the new home builder without having an Agent represent you. Think about it for a minute, the person you meet when you walk in the new home Model si working for the Builder. They have fiduciary duties to the builder not you the person looking to buy so why do you think they will give you the best deals.

If you are looking for a new home in the Central Florida – Orlando area then contact me. I am a certified Accredited Buyer’s Representative – ABR® and I am specially trained with the knowledge and experience to get you the best deal from the builders. Never Step foot in the door of the Model home without having representation. Call me 407-744-1827 or visit www.FLhomeinone.com

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Posted by on August 27, 2013 in Uncategorized

 

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