Home Buying in 29414>Question Details

Michael, Home Buyer in 29414

With house prices falling, why are building prices remaining roughly the same?

Asked by Michael, 29414 Mon Aug 24, 2009

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3
"Used" houses are cheaper, not new ones. With inflation, builder's expenses are greater and they may be unwilling to take a further hit on the bottom line.
0 votes Thank Flag Link Fri May 17, 2013
Hi Michael,

builder prices actually just increased pretty dramatically. The base prices have been increased by approximately 15K across the board. Are you looking into new construction?

Rebecca Kroseberg
Carolina One Real Estate
843.901.8659
0 votes Thank Flag Link Fri May 17, 2013
Hi Michael, Builders have made construction loans based on the cost of the lot and subcontractor bids. The actual costs to build including materials can vary day to day or during the course of build time so many times the builder will offer incentives like credits on upgrades when they are able to build the home under cost. Builders do not cut their prices of homes because it can decrease the value of other homes that are under contract and under construction. Most times that builder cut or drop their prices is at the year end which varies depending on the builder to get rid of inventory. Great question. I hope this helps.
0 votes Thank Flag Link Wed Jun 23, 2010
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