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

To: John Vosilla who wrote (58873)	8/2/2006 2:46:36 PM
From: XoFruitCake	Read Replies (1) \| Respond to 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.

To: John Vosilla who wrote (58873)	8/2/2006 6:13:23 PM
From: Lizzie Tudor	Respond to of 306849

spot on "construction costs" really don't matter in most of CA.

To: John Vosilla who wrote (58873)	8/4/2006 11:08:03 AM
From: Don Earl	Read Replies (3) \| Respond to of 306849

RE: "Then you have exhurbs in markets with very strong population and job growth like Houston or Dallas where you can buy a brand new 3500 sf home with all the infrastructure in place for $170k." You're dreaming. At around $100 per square foot for materials, that 3,500 sf home would cost $350K, plus land, plus labor to build. You might be able to find a 3,500 sf home, in the ghetto, built in 1940, for $170K, but you won't find a new stick built house any place in the US at that price. If you got a deal on a lot in the boonies, and hired a crew of illegals, you might be able to pull it off for half a mil.