Wednesday, March 04, 2015

Starter Homes Not Being Built?

It does seem that builders are going with more mid- to upper-price ranged homes.  This article is a national snapshot, but there’s no doubt that the increase in material and labor costs and the shortage of skilled tradesmen is having an effect.  And vacant land prices are rebounding, too.

I’ve seen build jobs routinely go over the estimate and small, local builders can find it challenging to get construction loans for their clients, although that is getting better, too.  How much is one reason and how much another?  I’m not sure it really matters. 


I believe that a lot of folks are still not confident in the economy even though the major indicators are looking good, interest rates are staying low (for now), and the stock market is doing very well.  What are your thoughts?

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