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

To: microhoogle! who wrote (26323)	12/29/2004 2:28:29 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

Many existing home owners do have more freedom to lower their asking price than do most builders, who pay rapidly escalating land prices during each home buying euphoria. Even though new home prices have risen significantly, at least in the Western United States, home builder's profit margins are declining as they cannot raise new home prices as quickly as their land cost is rising. At some point in time new home sales largely vanish, while existing home sales continue at a reduced rate, while home prices fall. .