I just visited 4S Ranch today to check out their SFR. I mainly concentrated in the high 2000 to mid 3000 sq-ft range. All the prices I’ve seen today is 690-800k. The highest being around 820k. They all offer 20k incentives. I noticed that a lot of the resale homes around that size are all in the mid to high 800k and above. I guess builders know what it takes to sell homes quickly. Would be interesting how resale homes will react the builders’ prices.
Builders are always a little ahead of the market, on the way up and down. I’ve noticed the same thing also.
During this past boom, in 2003 and 2004, builders were behind the curve on the way up. They did not anticipate the bull so they left a lot of money on the table for the flippers. Then in late 2004 and 2005, they quickly corrected.
I expect the large builders such as Pardee, Lennar, KB Homes, etc… to adjust prices downward quickly in new developments. They may be reluctant to do so in close-out phases but when a new community (with a new name) is built, they’ll be at market prices.
Correct PerryChase. Seen it happen. Identical models, selling barely 3 miles away for 80K less and that is in charlotte NC. Heck a whole damn house can be bought for under 80 in parts of charlotte.
The second option is to have these builders “flip” their unbuilt lots to other builders who will promptly deliver the “screwgie” (and yes its an official word courtesy George of seinfeld) to the existing homeowners. That happens and we can at that time start licking our lips.
Cool.
Cow_tipping.
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