Developers will do whatever it takes. Swaps between builders, start undercutting with pseudo names (fox and jacobs and centex is a classic double speak example)
The basis for this I use is a development called Poplar woods in charlotte NC.
Started by David Weekley in 1996 who built a few 2-3K sqft houses at ~125 a sqft. Very very high end.
Then in 1998 they bailed and sold out to Shea, who promply shafted the old owners by building larger houses which were almost identical looking for ~ the same $$$ … like a 2K sqft DW will have cost the same as a 2.5K sqft Shea 3 years later.
Then Shea bailed in 2000 (charlotte had some serious price deflation from 96-02) selling out to beazer. Beazer first built ~$80-100 a sqft. Then in 2002-03 the last 6 lots were built by beazer for $50 a sqft or so. 2625 sqft with a base price of 135 or so.
If you want to see the neighborhood’s progression check it on the GIS system.
Its in Cabarrus county North carolina, near concord and the house I built (but didn’t move into) was 101 poplar woods drive. Check out all the rest of the neighborhood.
Falling real estate demand = lower prices for materials, land, labor and everything. I see it all dropping to 1/2 the peak and the builders still making $$$ hand over fist.
Cool.
Cow_tipping.
