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]

Builders will always charge what they know they can get away with. And it's basically a cartel where builders don't want to undercut each other, which would put all of their fat margins at risk. I'm not blaming builders -- if I were them, I would absolutely do the same thing. Why would I price a house at $2 million when I know that I can get a buyer at $2.5 million?  Buyers in desirable areas keep paying the higher prices, so builders will continue to price the houses accordingly.[/quote]

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