One of the most well-kept secrets in real estate is: it’s possible for builders to make money, even in a downturn.
When prices go down, builders pressure the subcontractors to reduce construction costs. The subcontractors really have no choice but to comply, b/c all builders are doing this.
The prices of building materials also go down. The crucial thing is land cost. I think the land in 4S was purchased in 2001 or even earlier, so the cost is not so high.
>> If they are at a far along stage, they are not going to stop
I agree with surveyor on this.
>> the floor plan we are looking at sold last year for $880K and is now at $720K
That’s a 18% reduction. What is the size (sq. ft.) of this floor plan ?
