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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: John Vosilla who wrote (58873)8/2/2006 2:46:36 PM
From: XoFruitCakeRead Replies (1) of 306849
 
"If the cost goes up, the price goes up. The story is the same for land. The turn key parcels with all utilities are gone. The cost to develop raw land is high. The cost goes up, the price goes up.'"

I would disagree with this statement. Early this year (Jan to Mar), the labor and material price of all home builder were going up but HB actually cut price during this period to sell new house. You can pass on the increase to the end consumer IF AND ONLY IF you have pricing power. Witness airline in the last few years, fuel cost were going up like crazy but they actually has to cut price to compete and as a result everyone loss until very recently.
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