Reply to SPRING MARKET!! What's the vibe?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The pricey new builds simply reflect that the builders are constantly pushing the market to see what they can get away with. The profit margins on those houses are insane (new builds in places like Bowie go for $750K -- see https://southlakebowie.com -- and they look virtually indistinguishable from the new builds in desirable areas, so land cost alone cannot account for the difference). In past years, builders have pushed the market and gotten away with it, so every year, they inch up more to see if buyers will accept the higher prices or balk. [/quote]

I'm sure there is greed but hasn't the price of all materials gone up too with the tariffs?  I feel like new builds could be cheaper and they should be.  Everything is so expensive now.  Don't get me started on restaurant prices...ugh[/quote]

Labor and materials in Bowie is this much cheaper than in Vienna or Mclean? Please.  It costs at least 1.5 mil to build a house (without cost of land) in the affluent NOVA burbs for a basic house.  If you want anything nice or high end it's north of 2 mil for build alone.  If you find a high end new construction home for a total of 1.5 mil within the 50-100 mile radius what does it tell you?  It tells you that construction cost of 2 mil alone carries a "land premium" that your builder wants to collect to add to the profit, not just profit on labor/materials. Because to build the same house that with land price included costs 1.5 mil elsewhere they will charge half this.  There is no way materials and labor is this much cheaper just 50-100s miles away.  Workers who labor on the houses in premium DC suburbs don't live in them, they commute from cheaper far out places. [/quote]

I saw a house in Vienna that looked huge and high end and was going for 3.5 mil.  The same type of house in premium Mclean goes for 4.5 mil.  There is no way that land in the premium parts of Vienna is that much cheaper than Mclean.  It's cheaper by some, but not 1 mil.  It tells me that developer in Mclean building on a similar lot would collect probably about 500k of "neighborhood premium" to construct an identical house, because there are buyers who want to live there with deeper pockets, who may not consider Vienna, so builders obviously capitalize on this. [b] It could be that the only way to mitigate it is to avoid local builders and try to find builders who work in cheaper areas?[/b]  Local builders also always canvas the areas for teardown properties to purchase before they hit the market because they know they can make more profit building on $$$ land.

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