{"id":5928,"date":"2014-01-23T13:49:06","date_gmt":"2014-01-23T13:49:06","guid":{"rendered":"http:\/\/www.anthonydidonato.net\/wordpress\/?p=5928"},"modified":"2014-01-23T13:49:06","modified_gmt":"2014-01-23T13:49:06","slug":"builders-hike-prices","status":"publish","type":"post","link":"http:\/\/www.anthonydidonato.net\/wordpress\/builders-hike-prices\/","title":{"rendered":"Builders Hike Their Prices"},"content":{"rendered":"

Builders Hike Their Prices<\/h2>\n
\"Builders<\/a>

Builders Hike Their Prices. Image courtesy of Supertrooper \/ FreeDigitalPhotos.net<\/p><\/div>\n

More builders are reporting they\u2019re raising their prices on new homes. Twenty-four percent of 231 builders recently surveyed say they raised their prices in December, which is an increase over a 19 percent low reported in November, according to John Burns Real Estate Consulting Inc. data. The percentage of builders who say they lowered their prices fell to 8 percent in December, after a 12 percent high in October.<\/p>\n

\u201cThe pricing environment notably improved,\u201d Jody Kahn, a senior vice president at Burns, told The Wall Street Journal<\/em>. \u201cIt\u2019s still not back to where we were earlier in [2013] with builders raising prices aggressively.\u201d<\/p>\n

In early 2013, more than half of the builders surveyed had reported raising their prices, with some markets, such as California and Arizona, even posting double-digit increases from 2012 levels. But prices curtailed during a slowdown in the summer months as interest rates rose.<\/p>\n

Lately, however, interest rates have mostly remained flat\u00a0\u2014 around 4.4 percent to 4.5 percent averages\u00a0\u2014 and improving employment numbers have builders feeling more confident again.<\/p>\n

Average new-home prices reached an all-time high of $340,300 in November, according to the U.S. Census Bureau.<\/p>\n

Michael Gapen, senior U.S. economist at Barclays, predicts that home prices will rise 7 to 8 percent this year adding to last year\u2019s gains of 11 to 12 percent.<\/p>\n

Buyers \u201cknow that builders tend to make price increases at the first of the year,\u201d says Gene Swang, a division president for David Weekley Homes. \u201cI think customers are concerned that if they didn\u2019t get a home under contract [in December], they\u2019d see higher prices in another month.\u201d<\/p>\n

Source: \u201cSanta\u2019s Gift to Builders: Higher Home Prices<\/a>,\u201d The Wall Street Journal (Jan. 21, 2014)<\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Builders Hike Their Prices More builders are reporting they\u2019re raising their prices on new homes. Twenty-four percent of 231 builders recently surveyed say they raised their prices in December, which is an increase over a 19 percent low reported in November, according to John Burns Real Estate Consulting Inc. data. The percentage of builders who … <\/p>\n

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