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

To: renovator who wrote (51565)	4/7/2006 3:15:32 AM
From: Amy J	Read Replies (1) \| Respond to of 306849

RE: "I know the production costs are rising( I am a general contractor) because all of the direct costs--materials, insurances, vehicle operations, labor--are up significantly over the last year." I thought Greenspan said there was no inflation ? (cough) Like you, I see inflation in several costs.

To: renovator who wrote (51565)	4/7/2006 10:35:17 AM
From: John Vosilla	Respond to of 306849

"The whole discussion made me wonder about the big builder margins. If they have less of the land value profit available and overall pricing is tightening in order to move inventory the builders become even more leveraged to volume in order to make their numbers. I know the production costs are rising" 30% year over year increase is what I hear. They seem to not be able to pass through these costs in the fast growing exhurbs like in Houston. I don't know how Centex can make a profit at what new and resales are going for per square foot versus the total costs to completion today. That does seem to be among the best markets to buy existing property though as I wait for builders to implode and close out projects at steep discounts the rest of this year. I'll be back in Katy in a few months.