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

To: Elroy Jetson who wrote (59137)	8/4/2006 8:43:01 PM
From: Don Earl	Read Replies (1) \| Respond to of 306849

RE: "To be fair if you set out to build a custom home yourself, you'll probably be taken advantage of and your costs will be very high." I've built 3 custom homes by myself. How many have you built? On the home I finished in 2003, permits to finish came in at $70 per foot. On the home I finished this year, it came in at $100 per foot. Plus the land, plus my labor. Sure you can cut corners, but the margins will be the same. Materials are up on average 50% over what they were three years ago. If you could build a cracker box on a slab, with fifty cent carpet and T-111 siding three years ago for $50 per foot, it'll cost you $75 per foot to build it today. You're missing the point of this whole exercise. The roughly 25% increase in the price of homes over the past 3 years doesn't have anything to do with a real estate bubble. It has to do with increases in the cost of materials.