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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: David Jones who wrote (970)	10/30/2001 8:25:24 AM
From: tdl4138	Read Replies (2) \| Respond to of 306849

"so where's the overpricing" Great question... How come a basic starter house can be built here for $45-$60.sq ft. And that includes a decent design, architectural roof, etc. Of course the ground is additional. Does concrete cost 4 times as much where you are? Sheetrock? Trusses? Are you paying $75.yd for the carpet that we have here for $20? Are the materials a much higher grade... Of course not. Labor costs and impact fees are obviously going to need to be factored. The difference is that the "market" has been playing the greater fool theory...and the prices just keep escalating because someone was willing to pay more for the next one. It doesn't mean they are worth it. And it doesn't mean that "values" won't adjust back down closer to true costs.