30A Skunkape said:
I read this story with some interest:
http://www.breitbart.com/news/2006/03/24/D8GI0TIO0.html
Is it common for new construction sales to slide while existing home sales rise? :shock: Is that due to newer houses having a higher pricetag?
Hi skunk,
I think it's just a function of what's happening overall in the industry at the time and many factors can affect whether new or existing homes sell.
Right now the cost of materials could have a bit to do with it. They've really increased in the past year and tougher building codes also increase production costs. Land has increased making it less profitable to do affordable housing in populated places.
Also, there will be differences depending on the area and the price range of the homes. Certainly when you look at a $250K home, it's harder to build one for that price now than it was so that price might be pushed to 300K which is a big deal to that buyer. When you're looking at a $2 million dollar home, I would think that an extra $100K in construction costs won't push that person to buy existing housing if they want to build.
