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ParticipantRich’s graphs are based on local wage, population and pricing trendlines. I feel very comfortable using those trendlines when making these comparisons.
1997 definitely wasn’t the bottom, but it was sill a little below the long term (local) pricing trendline. I think prices intersected the long term trend in 1998; logically that would be the point at which to base comparisons on where prices “should be”.
That is, unless one believes in some variation of the now-debunked New Paradigm or Soft Landing scenarios that predict a reset of the long term pricing trends at the much higher levels.
ParticipantRich’s graphs are based on local wage, population and pricing trendlines. I feel very comfortable using those trendlines when making these comparisons.
1997 definitely wasn’t the bottom, but it was sill a little below the long term (local) pricing trendline. I think prices intersected the long term trend in 1998; logically that would be the point at which to base comparisons on where prices “should be”.
That is, unless one believes in some variation of the now-debunked New Paradigm or Soft Landing scenarios that predict a reset of the long term pricing trends at the much higher levels.
ParticipantRich’s graphs are based on local wage, population and pricing trendlines. I feel very comfortable using those trendlines when making these comparisons.
1997 definitely wasn’t the bottom, but it was sill a little below the long term (local) pricing trendline. I think prices intersected the long term trend in 1998; logically that would be the point at which to base comparisons on where prices “should be”.
That is, unless one believes in some variation of the now-debunked New Paradigm or Soft Landing scenarios that predict a reset of the long term pricing trends at the much higher levels.
ParticipantRich’s graphs are based on local wage, population and pricing trendlines. I feel very comfortable using those trendlines when making these comparisons.
1997 definitely wasn’t the bottom, but it was sill a little below the long term (local) pricing trendline. I think prices intersected the long term trend in 1998; logically that would be the point at which to base comparisons on where prices “should be”.
That is, unless one believes in some variation of the now-debunked New Paradigm or Soft Landing scenarios that predict a reset of the long term pricing trends at the much higher levels.
ParticipantThe pricing of the credit is affected by the amount of perceived risks involved. Interest rates now are low because the risks are perceived to be low. If that investor perception changes as a result of abuses in the market, so too will the interest rates change.
Don’t kid yourselves; the abuses of the few will affect the many.
ParticipantThe pricing of the credit is affected by the amount of perceived risks involved. Interest rates now are low because the risks are perceived to be low. If that investor perception changes as a result of abuses in the market, so too will the interest rates change.
Don’t kid yourselves; the abuses of the few will affect the many.
ParticipantThe pricing of the credit is affected by the amount of perceived risks involved. Interest rates now are low because the risks are perceived to be low. If that investor perception changes as a result of abuses in the market, so too will the interest rates change.
Don’t kid yourselves; the abuses of the few will affect the many.
ParticipantThe pricing of the credit is affected by the amount of perceived risks involved. Interest rates now are low because the risks are perceived to be low. If that investor perception changes as a result of abuses in the market, so too will the interest rates change.
Don’t kid yourselves; the abuses of the few will affect the many.
ParticipantThe pricing of the credit is affected by the amount of perceived risks involved. Interest rates now are low because the risks are perceived to be low. If that investor perception changes as a result of abuses in the market, so too will the interest rates change.
Don’t kid yourselves; the abuses of the few will affect the many.
ParticipantI can answer this one. Land values are dropping like a rock right now. Other building costs are coming down too, but so far they aren’t coming down as fast.
That’s just a matter of time, though. There are a lot of areas in the nation where the costs of materials never did get anywhere close to what they are here, and there’s no reason why the local pricing can’t get a lot closer to the costs in other areas.
Yes, price declines do cut into the builders’ bottom lines, but those bottom lines were massively bloated back during the heyday. Those guys were marking up their options and upgards more than 300% of their costs. Those big 4×4 crew cab rigs they all drive didn’t materialize out of thin air.
When profitability on these projects drop the developers tend to stop building. This is why very little gets built during a bust, and why the developers try to outdo each other with price increases during the booms.
ParticipantI can answer this one. Land values are dropping like a rock right now. Other building costs are coming down too, but so far they aren’t coming down as fast.
That’s just a matter of time, though. There are a lot of areas in the nation where the costs of materials never did get anywhere close to what they are here, and there’s no reason why the local pricing can’t get a lot closer to the costs in other areas.
Yes, price declines do cut into the builders’ bottom lines, but those bottom lines were massively bloated back during the heyday. Those guys were marking up their options and upgards more than 300% of their costs. Those big 4×4 crew cab rigs they all drive didn’t materialize out of thin air.
When profitability on these projects drop the developers tend to stop building. This is why very little gets built during a bust, and why the developers try to outdo each other with price increases during the booms.
ParticipantI can answer this one. Land values are dropping like a rock right now. Other building costs are coming down too, but so far they aren’t coming down as fast.
That’s just a matter of time, though. There are a lot of areas in the nation where the costs of materials never did get anywhere close to what they are here, and there’s no reason why the local pricing can’t get a lot closer to the costs in other areas.
Yes, price declines do cut into the builders’ bottom lines, but those bottom lines were massively bloated back during the heyday. Those guys were marking up their options and upgards more than 300% of their costs. Those big 4×4 crew cab rigs they all drive didn’t materialize out of thin air.
When profitability on these projects drop the developers tend to stop building. This is why very little gets built during a bust, and why the developers try to outdo each other with price increases during the booms.
ParticipantI can answer this one. Land values are dropping like a rock right now. Other building costs are coming down too, but so far they aren’t coming down as fast.
That’s just a matter of time, though. There are a lot of areas in the nation where the costs of materials never did get anywhere close to what they are here, and there’s no reason why the local pricing can’t get a lot closer to the costs in other areas.
Yes, price declines do cut into the builders’ bottom lines, but those bottom lines were massively bloated back during the heyday. Those guys were marking up their options and upgards more than 300% of their costs. Those big 4×4 crew cab rigs they all drive didn’t materialize out of thin air.
When profitability on these projects drop the developers tend to stop building. This is why very little gets built during a bust, and why the developers try to outdo each other with price increases during the booms.
ParticipantI can answer this one. Land values are dropping like a rock right now. Other building costs are coming down too, but so far they aren’t coming down as fast.
That’s just a matter of time, though. There are a lot of areas in the nation where the costs of materials never did get anywhere close to what they are here, and there’s no reason why the local pricing can’t get a lot closer to the costs in other areas.
Yes, price declines do cut into the builders’ bottom lines, but those bottom lines were massively bloated back during the heyday. Those guys were marking up their options and upgards more than 300% of their costs. Those big 4×4 crew cab rigs they all drive didn’t materialize out of thin air.
When profitability on these projects drop the developers tend to stop building. This is why very little gets built during a bust, and why the developers try to outdo each other with price increases during the booms.
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